Goodyear Asia Pacific president Nathaniel Madarang said the move is part of the “Goodyear Forward” transformation initiative aimed at streamlining the company’s operations.

“This decision was not made lightly. We need to advance the long-term interests of our business and customers,” he said, according to Utusan Malaysia.

He said through this initiative, Goodyear hopes to reduce annual costs by US$1 billion (RM4.73 billion) by 2025 to stay competitive and strengthen its position as an industry leader.

Madarang said the manufacturing plant in Shah Alam will close from June 30. The closure is expected to be completed by the end of the year.

Madarang said the company would prioritise employees’ welfare.

Goodyear Malaysia will remain in the local market by importing tyres from its factories in Thailand, Indonesia, China and Taiwan.

The Goodyear factory in Shah Alam started operating in 1972.

Goodyear had been present in Malaya since 1929 and became a tyre supplier for the country’s first car, the Proton Saga, in 1985.