In a significant blow to South Africa’s manufacturing sector, Goodyear has announced plans to shut down its iconic tyre manufacturing plant in Kariega, Nelson Mandela Bay, potentially affecting up to 900 workers.
The decision comes as part of a global restructuring plan aimed at boosting efficiency and profitability within the company’s Europe, Middle East, and Africa (EMEA) operations.
The Kariega facility, which has been operational for 78 years, is one of the region’s oldest tyre production plants and has long been a cornerstone of the Eastern Cape’s industrial landscape.
Goodyear confirmed that it has entered into a Section 189A consultation process, a legal requirement under South African labor law when companies consider large-scale retrenchments.
“This decision was not taken lightly,” the company said in a statement. “We are facing mounting challenges from global market pressures, including overcapacity and increasing competition from low-cost imports.”
Local stakeholders have reacted with dismay. The National Union of Metalworkers of South Africa (NUMSA) condemned the move, warning of its devastating impact on families and the broader Kariega economy.
“This closure will deepen the already severe unemployment crisis in Nelson Mandela Bay,” NUMSA said. The Eastern Cape’s unemployment rate currently hovers near 42%, among the highest in the country.
The Nelson Mandela Bay Business Chamber also expressed concern, citing longstanding issues with port logistics, inadequate infrastructure, and policy uncertainty as contributing factors that have undermined the competitiveness of local manufacturers.
“This is a wake-up call for urgent reform,” said a Chamber spokesperson.
Goodyear expects the closure to cost between $100 million and $110 million, including severance packages and operational wind-down costs.
However, the company forecasts annual savings of $10 million beginning in 2026, once the restructuring is complete.
Economic analysts warn that the closure could set a troubling precedent for other global manufacturers evaluating their investments in South Africa.
“If multinationals continue to pull out due to structural issues, the country could lose its edge in the manufacturing space,” said Thabo Mokoena, an industrial economist.
As the consultation process continues, affected workers and union leaders are preparing for negotiations.
Community leaders are calling on the government to intervene and develop a sustainable plan to revive local industry and safeguard remaining jobs.
Goodyear’s exit from Kariega marks the end of an era — and perhaps the beginning of a broader reckoning for South Africa’s industrial future.
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