By Oliver Hall
Goodyear is set to closes its Taiwan tyres plant at the end of next month in a bid to cut its operational cots.
It is part of the tyres manufacturers plan to move production to low-cost countries.
A total of 236 employees at the plant in Taoyuan, outside Taipei, will all receive severance pay as part of the redundancy moves.
In a statement the company said: “The decision aligns with Goodyear’s global strategy to shift production capacity to low-cost countries.
“Goodyear remains committed to the Taiwan market and will work to ensure that there is no disruption to the supply of products or services to its valued customers,” it added.
US-based Goodyear opened its Taoyuan plant in 1969. The plant manufactured car tyres for domestic and export markets.
The company said tyres will be supplied to Taiwan from plants in Japan, Southeast Asia and Europe.
The firm’s sales operations in Taiwan will continue, it said.
Goodyear employs 800,000 workers in more than 100 plants all over the world. In the first quarter of 2010, its losses narrowed to $47 million from $333 million year-on-year.