Goodyear Dunlop Might Close Tire Plant in France image

Goodyear Dunlop France, the French subsidiary of Goodyear, announced its employees that the Amiens plant might have to be closed.

The company has received no viable offers for the Amiens tire plant and the French government told Goodyear Dunlop France to take the necessary measures to accompany the 1,713 workers, in case the plant has to be closed. The company said that that three tire companies showed interest in the plant, but made no move, and also two investment funds with no experience in the tire industry, but they could not guarantee that the business will be continued and the current jobs preserved.

The French industry ministry said that 57 companies have been asked if they are interested in the Amiens tire plant, but none made a bidding offer. The ministry considers that one of the reasons for the lack of interest is the poor investment the tire company has made in its production facilities, but also blames the market share losses.

It’s been six years since the Amiens plant has begun to struggle, with plans for layoff successively rejected by the French courts. Several years ago Titan International made an offer for the plant, planning to buy it for its agricultural tire business, but the deal was dropped due to the left-wing CGT union interference.

Source: nasdaq.com