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August 16, 2004 02:00 AM

Goodyear closes Guatemala tire plant

Bruce Davis
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    AKRON (Aug. 16, 2004) — Goodyear closed its Gran Industria de Neumáticos Centroamericana S.A. tire plant in Guatemala City, Guatemala, in March, citing reduced demand for the plant's products, primarily bias-ply tires.

    Goodyear did not disclose the closing outside of Guatemala until now.

    Ginsa, as the unit was known locally, had been in operation since 1965. At last report, it employed 50 in the production of bias-ply passenger, light and medium truck and agricultural tires. Capacity was listed as 3,500 units per day.

    Goodyear said the affected employees “received total payment of benefits required by contract and by law,” but it did not disclose specifics of the settlement or any costs related to the shutdown.

    Goodyear said it plans to sell the property and would use any equipment still deemed usable in other plants.

    In recent years Goodyear was involved in ongoing labor disputes with the work force there, but a company spokesman said the labor disputes had no effect on the company's decision.

    The company will continue to distribute tires in Guatemala through a network of approximately 60 dealers.

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