Goodyear to upgrade 2 plants in Germany; job losses expected
AKRON—Goodyear has approved plans to modernize tire plants in Hanau and Fulda, Germany, over the coming two to three years to increase their capacities for larger rim-diameter consumer tires.
The plan, disclosed March 19 in an 8K filing with the U.S. Securities and Exchange Commission, will result in the elimination of about 1,000 jobs at the two factories due to efficiency gains related to the use of newer equipment and new plant layouts.
The plan is subject to consultation with relevant employee representative bodies, Goodyear said. The plants, operated by Goodyear Dunlop Tires Germany GmbH, employ about 2,800 hourly workers now—1,300 in Hanau in western Germany and 1,500 in Fulda in central Germany.
Goodyear did not disclose the projected investment for the factory restructuring nor the project's effect on capacity, but it did say in the 8K filing that it estimates pre-tax charges associated with this plan to be at least $135 million, of which approximately $125 million is expected to be cash charges primarily for associate-related costs and approximately $10 million for non-cash charges primarily related to asset write-offs and accelerated depreciation.
The company said it expects to record approximately $90 million of these charges in the first quarter of 2019 and to make cash payments of approximately $30 million in 2020 and $40 million in 2021.
Once completed, Goodyear said these actions should yield cost savings that could improve segment operating income for the Europe, Middle East and Africa's segment by $60 million to $70 million a year over three years beginning in 2020.
Both the Hanau and Fulda plants are rated at 21,000 passenger and light truck tires a day.
The Hanau plant originally was a Dunlop Holdings factory that Goodyear has operated since the formation of its global alliance with Sumitomo Rubber Industries Ltd. in 1999.
哈瑙（Hanau）工厂最初是邓禄普控股公司(Dunlop Holdings)的工厂，固特异自1999年与住友橡胶工业株式会社(Sumitomo Rubber Industries Ltd.)结成全球联盟以来一直在运营这家工厂。
The Fulda plant was operated independently by Gummiwerke Fulda G.m.b.H from its founding in 1900 until 1966 when Goodyear acquired it.
富尔达工厂自1900年成立以来，一直由Gummiwerke Fulda G.m.b.H独立运营，直到1966年固特异收购了它。
Goodyear has three other tire factories in Germany: in Wittlich (truck tires); Fuerstenwalde (passenger/light truck tires); and Riesa (passenger tires).
固特异在德国还有另外三家轮胎工厂：Wittlich（卡车轮胎）; Fuerstenwalde（轿车胎/轻型卡车轮胎）; 和Riesa（轿车轮胎）。
It closed another passenger tire plant, in Philippsburg, in mid-2017, a move that affected 890 workers at the 50-year-old plant.
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