Goodyear Closes Tennessee Plant Ahead of Schedule
DETROIT -- Top U.S. tire maker Goodyear Tire & Rubber Co. stopped production at its manufacturing facility in Union City, Tenn., and will close the facility, the company said on Monday.
The plant has about 1,800 workers and is a top employer in the city of about 10,500.
Goodyear had planned to shut the facility by the end of the year. It was able to transfer its products to other facilities more quickly than expected, so it is closing the Union City plant now, it said.
A 2009 contract with the United Steelworkers union provided job security at six other plants but left jobs in the Union City plant unprotected.
Goodyear said previously that it will save $80 million per year by closing the plant. It said on Monday that it will pay an additional $20 million in restructuring costs related to the closure, on top of the $270 million it has already recorded.
It will record most of the additional $20 million in costs in the second quarter and said it would provide further details in its second quarter earnings announcement.
(Reporting by Clare Baldwin; editing by Derek Caney.)
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