Gadsden's Goodyear Facility Subjected to Close Permanently
A tire manufacturing facility that’s been in the East Alabama area for more than 90 years, could soon close its door indefinitely. The Goodyear Tire and Rubber Company reached a tentative agreement earlier this month to permanently close its Gadsden facility. This agreement is part of the company’s strategy to strengthen the competitiveness of its manufacturing footprint by curtailing production of tires for the declining and less profitable segments of the tire market. That’s according to a filing by the United States’ Securities and Exchange Commission. Last year, the company approved a plan to offer voluntary buy-outs to certain associates at the Gadsden facility that totaled $75 million.
The plan to close the facility still requires approval by the membership of the local union. Since its existence, the facility once employed 4,000 people, and as of earlier this year, it currently employs a little over 400. Gadsden Mayor Sherman Guyton says in a press release that Goodyear has not notified the city of its permanent closure, but city leaders will remain committed to doing everything they can or workers laid off from Goodyear.