One of the biggest tire manufacturers in the world, Goodyear Tire & Rubber Co., has announced that it would shut down its Malaysian facility on June 30. Over 500 workers are anticipated to be impacted by this decision, according to both the business and Malaysia's investment promotion agency.

Goodyear stated that the closure of its Shah Alam district factory in Selangor state, which first opened for business in 1972, was a component of its Goodyear Forward corporate restructuring initiative, which aims to reduce costs by US$1 billion by 2025.

The firm stated in a statement on Thursday (Mar 7) that these choices are not taken lightly and that we are still dedicated to treating our workers with care and respect. With our industry-leading products and solutions from other Goodyear production locations, we will keep serving the Malaysian market.

In recent years, Goodyear has been accused of labor violations at the Malaysian manufacturing factory, including unpaid salaries, excessive overtime, and threats against scores of migrant workers. According to Reuters, the corporation and the workers came to a settlement deal in 2022, with each employee receiving payment ranging from RM50,000 to RM200,000 (US$10,600 to US$42,600), based on the duration of their service.

The Malaysian Investment Development Authority (MIDA) stated in a separate statement on Friday that around 550 workers will be directly impacted by the plant's closure.

According to MIDA, Goodyear and the Malaysian government have been collaborating to create a support system for these workers that includes job placement assistance and programs for upskilling and reskilling.

Malaysia's Human Resources Ministry and US officials have accused the country of labor violations at its factories, which use millions of migrant laborers to produce everything from semiconductor chips to medical gloves and palm oil. The government wants to end forced labor practices by the year 2030.