A day before the public announcement from Toyo Tires, the plant’s management had already notified its staff.

One employee, who did not want to be named, told FMT that it was understood that all of those working at the factory were due for retrenchment.

He said he first shrugged off the closure as a long-time rumour, and was genuinely shocked when he received the notice from management.

“Can’t help feeling lost right now, because it’s so hard to find a job these days due to the lockdown, but what more can I do?,” he said. “Hopefully we’ll get decent compensation from it.”

According to the notice, the plant’s human resources department will be meeting employees to give a more detailed explanation and clarify any lingering doubts.

“Tyres manufactured under the Silverstone brand will now come from Toyo Tires’ other plants,” it said in a notice that was soon circulated on Facebook.

The notice said Toyo Tires Corporation had found the 30-year-old plant falling behind in several aspects.

“This is compounded by the effects of Covid-19, which has effectively pulled the plug on business,” it said. “Rising competition from tyre manufacturers in neighbouring countries factor in as well.”

The notice also assured the corporation would honour all terms and conditions as specified in the collective agreement as well as the law in the retrenchment of the factory’s staff.

In 2010, Toyo Tires purchased Silverstone for RM462 million as part of its plan to expand its operations through Silverstone’s market.

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