Goodyear's SA operation skidding to a halt
The company has initiated a Section 189A consultation process, which is expected to lead to the closure of its plant in Kariega, Eastern Cape.
This factory has been operational for 78 years (since 1947).
The National Union of Metalworkers of South Africa is dismayed by the decision, warning that the closure could result in the loss of over 900 jobs.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Citizen
4 hours ago
- The Citizen
Here's how much Goodyear employees will receive as Kariega plant shuts down
Numsa is working with government to take over the manufacturing plant after Goodyear insisted on removing its intellectual property. The National Union of Metalworkers of South Africa (Numsa) have claimed a small victory as Goodyear's production plant in the Eastern Cape closes. Goodyear confirmed the shutdown of its South African production operations in June, with improved severance terms being agreed on Friday. Headquartered in the US state of Ohio, the multinational giant ended its 78-year association with South Africa. Goodyear severance payouts The company will still retain a retail presence in the country, but Numsa said this will have little consolation, as they revealed the severance terms at a briefing in Johannesburg on Monday. Goodyear initially offered workers R50 000 severance pay and two weeks' pay for every year employed, with Numsa securing a doubling of that offer for members. In addition to the severance lump sum, employees will receive an extra month's salary, full pay for August and all bonuses owed. For those who had obtained bursaries or were pursuing trade examinations through the company, the payment of those programmes will be honoured by Goodyear. The bill for counselling sessions, medical-aid obligations and an undisclosed amount set aside for an education and work security fund will also be footed by Goodyear. Numsa has 488 affiliated employees with between one and 26 years at the plant, and they will receive between roughly R200 000 and R650 000 each. The Kariega factory had 64 Numsa member with between 26 and over 40 years of service, and they will receive in excess R1 million each. Segment losses for tyre company Just last week, Goodyear reported global net income of $254 million for the second quarter of 2025 — up from $79 million from the same period last year. 'The second quarter proved challenging in both our consumer and commercial businesses, driven by industry disruption stemming from shifts in global trade – including a surge of low-cost imports across our key markets,' stated Goodyear CEO Mark Stewart. South Africa falls into Goodyear's Europe, Middle East and Africa (EMEA) business segment, which recorded a loss for the second quarter of 2025. 'Segment operating loss of $25 million was $55 million lower than last year, driven by higher raw material costs, the non-recurrence of the 2024 net insurance recoveries, and inflation,' the company stated when announcing its quarterly performance. In the last six months the EMEA segment recorded the sale of 23.6 million tyre units, but at a 1.1% operating margin loss. Goodyear were asked by The Citizen what percentage of the segment South Africa comprises, but no response was forthcoming. Goodyear's Americas and Asia Pacific segments recorded positive operating margins of 5.7% and 9.4%, respectively. 'Risk of deindustrialisation is no longer a distant threat' Numsa called Goodyear's decision to close the Kariega plant 'unscrupulous' and wanted the company to donate the plant and intellectual property to the community. '[Goodyear] ultimately agreed not to dispose of its property and whatever other assets fall outside of its claimed intellectual property for a period of two months, as to enable Numsa to further pursue discussions with government,' stated Numsa General Secretary Irvin Jim. 'To this effect, with the support of national government — the Department of Trade Industry and Competition in particular), the Industrial Development Corporation has made an expression of interest to Goodyear to take over the plant infrastructure,' he explained. Jim called on government to take 'decisive measures' to protect the manufacturing sector, including tariffs, a ban on tyre imports, tighter tax regulations on multinational companies and a coherent state-led industrial strategy. 'The risk of deindustrialisation is no longer a distant threat; it is a reality we are already facing, made worse by rising unemployment and economic hardship for workers,' Jim concluded. NOW READ: Unemployment increases again as economy sheds 140 000 jobs
IOL News
5 hours ago
- IOL News
NUMSA calls for aggressive industrial strategy to combat deindustrialisation
NUMSA urges government action to boost localisation and curb imports Image: Phando Jikelo The National Union of Metalworkers of South Africa (NUMSA) urged the government to implement an aggressive industrial blueprint to reposition the country's manufacturing base. In a press briefing by General Secretary Irvin Jim on Monday in Johannesburg, the union called for higher tariffs on automotive, tyre, steel, and engineering sectors, stringent procurement rules to boost localisation, and decisive steps to curb imports and unfair practices. NUMSA's stance comes as fears of deindustrialisation and mass retrenchments loom over a sector that has struggled with competition from cheaper imports and policy gaps. The union proposed immediate protective measures and a longer-term strategy to strengthen local content and investment. 'Given that National Treasury has already passed the Public Procurement Act to support manufacturing and industrialisation, it is essential that National Treasury move swiftly to introduce public regulations to implement this Act,' Jim said, framing procurement reform as a crucial lever for localisation and designation. NUMSA's plan reflects urgent fears of deindustrialisation and retrenchments, pairing immediate protective measures with a longer-term push for local content and investment. Key elements of NUMSA's position include Tariffs and Localisation standards. The union reiterated calls for tariffs across core sectors and 'clear standards for homologation.' It highlighted the tyre-dumping crisis and urged a ban on tyre and carbon black imports, while pressing for standards that ensure domestic job creation and value added. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Jim argued that the state must use procurement to drive localisation, urging foreign brands seeking market access to establish assembly plants in South Africa and employ local workers. He cited data showing 65% of local-market vehicles are imported with zero local content to underscore the need for policy incentives that reward local manufacturing and living-wage jobs. NUMSA urged SARS to crack down on transfer pricing and profit shifting, contending that such practices drain the fiscus and undermine incentives meant for job creation and local industry. In steel, NUMSA called for stronger protection of primary production, including measures against cheap imports. The union pointed to July 2024–January 2025 data showing 1.4 million tons of steel imported, with some importers securing refunds that harmed local producers. Retrenchments were highlighted as a direct consequence of policy gaps. The briefing linked current challenges to a neoliberal agenda and called for urgent energy reliability as part of a broader industrial strategy. "Eskom's ongoing crisis and load-shedding are described as persistent threats to manufacturing competitiveness. The union framed government intervention as essential to 'protect what remains of our manufacturing base,' including efforts to support distressed plants such as Goodyear's Kariega facility and demand accountability across government and industry levels. NUMSA also pressed for accelerating localisation to 60% in production while continuing to pursue export opportunities. Jim warned that deindustrialisation is underway and urged the government to couple incentives with tighter local content and designation conditions. 'The risk of deindustrialisation is no longer a distant threat; it is a reality we are already facing,' Jim said, calling for a comprehensive industrial strategy that prioritises job creation, economic justice, and robust public-sector leadership of critical sectors. IOL Politics
Daily Maverick
6 days ago
- Daily Maverick
Key conversations at Naacam 2025 to address tariff pressures and growth
As Nelson Mandela Bay's automotive sector reels from ongoing challenges and a shrinking market, the 2025 Naacam Show provides a crucial opportunity for industry leaders to come together and explore ways to support growth and sustainability. With US tariffs adding fresh pressure, manufacturers of vehicles and automotive components in Nelson Mandela Bay face an uphill battle to stay competitive in an increasingly shrinking market. However, over the next two days, automotive roleplayers will have the opportunity to connect and network on ways to improve their businesses at the 2025 edition of the National Association of Automotive Component and Allied Manufacturers (Naacam) Show and Conference, which takes place at the Boardwalk Hotel International Convention Centre in Gqeberha. About 150 exhibitors will showcase their products and services, while a host of speakers will lead discussions related to the South African automotive industry on a local and global scale. Speaking at the media launch of the event on Tuesday, Naacam CEO Renai Moothilal said South Africa's automotive component manufacturers provided 80,000 direct jobs and about twice as many indirect jobs through suppliers and other auxiliary businesses. He said there was growing concern over the 'fluid global trade environment', referring to the 30% US tariffs and their impact on this sector. In 2024, the export value of South Africa's automotive industry, including vehicles and components, totalled R270-billion, of which just over 10% — R28.7-billion — went to the US. Breaking that figure down further, Moothilal said R4.4-billion worth of components were exported to the US. 'We live in interesting times, and this sector has faced distinct challenges in the recent past. We have observed a decline in the domestic market for vehicles assembled in South Africa, as well as increased import penetration in both vehicles and components. This led to reduced production from original equipment manufacturers (OEMs).' The panel pointed to two stark examples of mounting pressure on the sector — the withdrawal of Goodyear South Africa and the pending closure of its Kariega plant, and the announcement by Jendamark Automation that US tariffs could cost it R750-million in contracts. In addition to the blow delivered to Nelson Mandela Bay in June when the Goodyear announcement was made, a week ago, ROVD Engineering, also based in the metro, said it had lost hundreds of millions of rands in contracts because of the US tariffs. The company, which has operated in Gqeberha for 61 years, designing, manufacturing and exporting turnkey industrial automation systems to US customers, said it was looking at moving offshore to continue manufacturing. Political instability But global pressures aren't the only threat. Locally, Nelson Mandela Bay's political instability and crumbling infrastructure are disrupting the supply chains that manufacturers depend on. Pointing this out, the CEO of the Automotive Industry Development Centre in the Eastern Cape, Thabo Shenxane, said the political climate and service delivery in Nelson Mandela Bay were ongoing challenges. He said crumbling infrastructure had caused countless disruptions throughout the value chain as it led to unreliable energy, water outages and logistical issues as a result of poor roads and inoperable railway lines. He also referred to the well-documented political instability that has long plagued the metro. 'It's not just a Naacam member problem or a government problem. It is a societal problem, and we must look for opportunities to improve our business,' said Shenxane. He believes the Naacam show provides a unique opportunity for stakeholders in the automotive industry to engage constructively and develop solutions that will assist each other and add to the growth of the entire sector. Automotive Industry Transformation Fund (AITF) CEO Jabulani Selumane agreed with Shenxane, saying the show could prove to be a 'catalyst' for SME growth within the automotive sector. He said that since the AITF was founded in 2021, it had contributed to the establishment of 70 small businesses within the sector, creating 2,700 jobs in the process. 'SMEs are not just junior partners. They are the growth engine, and they bring agility, innovation and the capacity to localise component manufacturing to build resilience in our supply chain.' He said SMEs could not operate in isolation but required support, resources, skills and market access that larger corporations provided, which made the Nacaam Show a valuable platform for growth and development. DM
