Tire makers slowly resume production

AKRON — As the world starts to ease COVID-19 pandemic restrictions, tire makers are charting a course back to production.

Widespread business closures have rocked economies, companies and personal pocketbooks, but amid the chaos of the pandemic, calls for resuming normal commerce have grown increasingly vocal.

Like all businesses, Goodyear is navigating in a world where people are expected to wear masks, and social distancing is the norm.

"We are implementing a phased approach to restart production based upon regular assessments of local market conditions and inventory levels across each product segment," Goodyear CEO Rich Kramer said.

"As we think about bringing the majority of our workforce outside of China back to the workplace, our top priority remains safeguarding the health and well-being of our associates. Our leaders are working to implement measures recommended by the Centers for Disease Control and Prevention (CDC) and other leading authorities," he said. That includes "attention to personal hygiene, enhanced disinfection, visitor protocols, and physical distancing."

• This article appears in the May 11 print edition of Tire Business.

Goodyear said it is keeping a keen eye on its suppliers to ensure needed materials are ready for when the company starts ramping up production.

"Our supply-chain and procurement teams are working nonstop to ensure we have adequate breadth and depth of the required raw materials so that we can move quickly once we see the relevant market signals. At this point, our key suppliers remain online or have adequate inventory to meet our needs as our plants reopen," Mr. Kramer said.

Some Goodyear chemical plants have resumed, the CEO said, along with "a limited ramp-up of our commercial truck tire facilities in the U.S. and Europe."

Production in most of the company's consumer tire factories in Europe and Turkey also have resumed, Mr. Kramer said.

Despite the near-term problems created by COVID-19, Mr. Kramer said, "We know mobility will resume and tires will be in demand. Our team is experienced in dealing with market volatility."

One Goodyear tire plant that will not reopen, however, is in Gadsden, Ala., where employees agreed recently to a permanent closure. Unionized employees had a contract required that the plant stay open through 2022 but agreed to allow the plant to cease operations. 

Yokohama Corp. of North America, meanwhile, reopened its West Point, Miss., truck tire plant April 27 and is taking precautions as production resumes.

To ensure the health and welfare of all personnel upon their return, Yokohama implemented new safety procedures at the plant based on the latest guidelines from the CDC and local authorities, the company said.

In Georgia, Kumho Tire USA Inc., Pirelli Tire North America Inc. and Toyo Tire Holdings of Americas Inc. have either resumed production or are in the process of doing so.

In Macon, Ga., Kumho reopened the company's plant, at least temporarily. The facility resumed production May 5 and is scheduled to keep running "with enhanced safety precautions" until May 15, the company said.

"We will continue to monitor the situation closely, check the production status of our OE partners, and determine whether to keep it open through the end of the month," the company said in a statement.

Pirelli resumed production May 2 in Rome, Ga., after COVID-19 forced the company to close the passenger tire plant for five weeks. The facility was operating at about 60% of production capacity in early May with plans to increase work as demand warrants, the company said. When running at full throttle, the plant employs 300 workers to make up to 400,000 tires each year.

Toyo resumed production May 3 at its consumer tire plant in White, Ga. Toyo said it is following CDC guidelines and implemented a revised shift schedule as it ramps up production. The return to manufacturing ends a plant closure that lasted more than a month. The facility, with a workforce of about 2,000, was idled March 30.

Nokian Tyres Inc. ended a five-week production shutdown May 4 at the company's Dayton, Tenn., facility. Precautions taking place in Dayton include temperature screening, social distancing, altered lunch schedules and separate entrances by department. Visitors also are being limited to the plant, which is undergoing frequent cleaning. Nokian opened the $360 million Dayton site, with an annual capacity of 4 million tires, last October.

In addition, Continental Tire the Americas resumed truck tire production April 27 at its Mount Vernon, Ill., factory, with passenger and light truck tire production coming back on stream in phases starting May 4 with "very limited production," the company said in a memo. Full-scale production of car and light truck tires was to resume May 11.

The facility's precured tread rubber unit continued full operations in support of essential business markets, Continental said. Mixing operations resumed April 26 in support of the planned return of truck tire and passenger/light truck tire production.

Elsewhere, in India, Apollo Tyres Ltd. resumed partial production April 21 of truck, farm and OTR tires at its Perembra plant and then started reopening plants in Chennai, Kalamassery and Limda, India, as well as in Gyongyoshalasz, Hungary.

Balkrishna Industries Ltd. (BKT) also has partially resumed production at its tire factories in Aurangabad, Bhiwadi, Chopanki and Bhuj, India, as well as a carbon black plant in Bhuj and a tire mold facility in Dombivali.