Africa-Press – South-Africa. The Department of Trade, Industry, and Competition is stepping in to try to prevent the closure of Goodyear’s factory in Kariega, in the Eastern Cape.
The Department of Trade, Industry and Competition (DTIC) is holding urgent talks with Goodyear to try to save the plant and prevent what it describes as a looming economic disaster.
The factory’s closure comes as the Eastern Cape, where Kariega is located, faces an extremely high unemployment rate.
The concerning level of unemployment in the Eastern Cape was recently highlighted in Stats SA’s latest Quarterly Labour Force Survey for the first quarter of 2025.
Over half of the working-age population in those provinces would be categorised as unemployed or having given up looking for work.
The report showed that Mpumalanga and the Eastern Cape are on the verge of joining the North West, with more people unemployed than working.
According to the extended definition, the North-West province already carries this distinction with 56% of the population unemployed.
However, Mpumalanga and the Eastern Cape are close by, with expanded unemployment rates of 49.3% and 49.0%, respectively.
The DTIC has warned that Goodyear’s exit would exacerbate the crisis, impacting the workers directly employed and the secondary industries dependent on the plant.
These include catering, security, and corporate social investment initiatives.
Government spokesperson Yamkela Fanisi said a potential solution to the situation is to adopt a strategy similar to that used to prevent steel giant ArcelorMittal from shutting down its operations.
The agreement with the steel manufacturer, facilitated by the Industrial Development Corporation (IDC), involved a significant R1.68 billion financial facility.
This support enabled the company to postpone the closure of two steel mills and protect 3,500 jobs.
Fanisi noted that a similar intervention could be considered for Goodyear, provided the company is willing to cooperate. However, Goodyear has so far remained silent on the negotiations.
In the statement on its closure intentions, the company said it is committed to supporting affected employees but provided little detail on its willingness to keep the plant open.
The closure, it explained, forms part of a broader effort to streamline its operations across Europe, the Middle East, and Africa.
The restructuring involves closing the South African facility and realigning sales, administrative, and management functions in accordance with the Labour Relations Act.
Goodyear not the only one
Goodyear’s planned departure has raised significant criticism. Former South African ambassador to Japan Smuts Ngonyama also called on government ministers to intervene.
He urged the state to provide incentives and support to ensure the facility remains operational.
He stressed that the plant’s continued operation is vital not just for the region’s economy but also for the dignity and livelihoods of its workers.
Labour unions have also raised concerns, with the South African Federation of Trade Unions (Saftu) voicing strong opposition.
Spokesperson Newton Masuku described Goodyear’s decision as a betrayal of the workers and communities that have supported the company for nearly a century.
“We now face a coordinated wave of industrial disinvestment across the Eastern Cape, and workers are being left to carry the cost,” he said.
Along with the news from Goodyear, Masuku noted that Conti-Tech, a subsidiary of Continental Tyres, has recently scaled down operations, and Aspen Pharmacare has also announced job cuts.
These closures, he said, are not driven by economic collapse but by corporate restructuring and cost-cutting, prioritising global strategies over local impact.
“These decisions will deepen poverty, accelerate migration, and destroy any hope of economic transformation in the Eastern Cape,” Masuku warned.
He further argued that multinational corporations cannot be trusted to prioritise South Africa’s developmental needs, calling the wave of closures an abuse of public trust.
Given these concerns, Saftu has called for a coordinated response involving the National Union of Metalworkers of South Africa (Numsa), the DTIC, Goodyear, Conti-Tech, Aspen, and other key stakeholders.
The union wants urgent crisis negotiations to explore alternatives to closure and find ways to preserve jobs.
While the government remains hopeful that a last-minute deal can be struck, the company’s commitment to its global transformation strategy might still mean local efforts will not be enough to reverse the decision.
For More News And Analysis About South-Africa Follow Africa-Press
