American tire manufacturer Goodyear will close its Kariega production facility in the Eastern Cape, putting 900 jobs at risk as part of a strategic restructuring across its Europe, Middle East and Africa operations.
The shutdown represents a significant blow to South Africa's industrial sector and threatens to worsen unemployment in a province already facing economic challenges. The company has begun formal restructuring proceedings under the Labour Relations Act, affecting manufacturing, sales, administrative, and management positions.
Despite ending production, Goodyear plans to maintain its market presence through Hi-Q retail outlets and authorized dealers across the country. The company emphasized that the closure doesn't reflect on the local workforce's performance over the years.
The decision marks the end of an era for Goodyear's South African operations, which began in 1918 with manufacturing starting in 1947. The Kariega plant was the sole producer of specialized Off-The-Road Bias tires for mining and construction equipment, serving both domestic and export markets.
Goodyear was one of four major tire producers in South Africa, competing with Bridgestone, Sumitomo Rubber SA, and Continental. Industry data shows the country's annual tire market totals approximately 16 million units, with local manufacturers producing 11 million tires and 5 million imported to meet demand.
The restructuring comes roughly one year after Paul Gerrad became Managing Director of Goodyear South Africa in May 2024. The company described the move as part of efforts to "optimize its footprint and portfolio" within the EMEA region.
The closure eliminates a key industrial employer in the Eastern Cape and reduces South Africa's manufacturing capacity in a critical automotive component sector.
