AKRON, Ohio (AP) -- Goodyear Tire & Rubber Co. said Friday it would close a tire plant in the Philippines as part of its strategy to reduce production capacity amid weaker global demand.
The plant closure in Las Pinas will cut nearly 2 million units of Goodyear's annual capacity. The Akron, Ohio-based tire maker has stated that it would reduce production by 15 million to 25 million units over the next two years.
Goodyear said in a statement that some production from the plant will be transferred to other, lower-cost plants in Asia.
The closure will result in an approximately $20 million charge, which Goodyear will take in the third quarter as a non-cash asset write-off. That charge is in addition to a $60 million charge Goodyear is expected to record in the same quarter related to downsizing its Union City, Tenn., plant.
Shares of Goodyear fell 5 cents to $12.56 in morning trading.