Enlarge image NEW YORK (Reuters) - The Goodyear Tire & Rubber Co
The world’s largest tyre company, which is based in Akron, Ohio, said it has begun discussions with union employees as a step towards shutting its Goodyear Dunlop UK passenger tyre factory in Washington, northeast England.
In addition, the company said it will discontinue production of bicycle tires and inner tubes at its plant in Debica, Poland.
The company estimated the plant closures will lead to elimination of about 1,500 jobs and create annual cost savings of between $40 million and $50 million, and result in a charge of between $105 million and $115 million.
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About $55 million of the charges will be taken in the first and second quarters of 2006, the company said in a statement.
The company’s global fourth-quarter sales edged up 2.1 percent to $4.93 billion, supported by price increases and the sale of more expensive tires.
To bolster earnings, the tyre maker last September said it would continue a multi-year restructuring of job cuts, plant closings and sales of non-core businesses.
Goodyear has said it wants to cut costs by up to $1 billion over the next few years, with a focus on its North America operations and by buying raw materials and equipment from Asia.
The company has more than 80,000 employees that make tires, rubber products and chemicals in 28 countries.
