KUALA LUMPUR: Goodyear's global operations restructuring in the past year has forced a number of its factories, including its Shah Alam plant, to shut its doors, the Dewan Rakyat heard today.
Selangor Menteri Besar Datuk Seri Amirudin Shari (Pakatan Harapan-Gombak) said the tyre manufacturer began scaling back operations worldwide, including in East Europe, Asia and Africa since last year.
"After the news broke this morning, I checked, and found that Goodyear closed its factory in Ohio, United States, last year.
"Goodyear also conducted a restructuring exercise by axing 1,200 of its workers in East Europe, Africa and Asia.
"This was done because of business restructuring, as it cannot compete with other competitors."
He said this when debating the royal address at Dewan Rakyat today.
Amirudin added that according to the Goodyear's annual report, the company needed to reorganise its business operations due to high expenses as well as the lower labour cost in other countries such as Vietnam.
He also said it was therefore unfair for the opposition to blame the government for Goodyear's factory closure after being in Shah Alam for over five decades.
Earlier, Wan Ahmad Fayhsal Wan Ahmad Kamal (Perikatan Nasional-Machang) had likened Goodyear's decision as another sign of declining confidence among international companies towards the country's current economic situation in the country.
The closure of Goodyear's 52-year-old Shah Alam plant, effective June 30, would impact about 550 workers.
This was announced by Goodyear Asia Pacific president, Nathaniel Madarang, in a leaked memo that spread on social media.
Madarang said the plant closure in Shah Alam is part of the 'Goodyear Forward' transformation programme aimed at optimising the company's footprint and portfolio, achieving significant margin expansion, and enhancing shareholder value.
