Bridgestone’s Port Elizabeth plant faces possible closure with 250 jobs on the line.
This as demand for the tyres produced at the plant has declined.
The announcement by Bridgestone Southern Africa (BSAF) CEO Jacques Fourie on Thursday confirmed that staff had been issued with Section 189 notices.
The plant produces an older version of bias-industrial and off-the-road tyres that has seen a steady decline over the years.
The agricultural industry is shifting to radial tyres, which are longer lasting, and the production of which is modern and high-speed.
“To produce radial tyres an investment in a completely new multi-billion-rand plant would be needed, which is not feasible in the current economy.”
He said the shrinking economy and an influx of cheap imports added to this.
“All these technical and economic factors combined have created an environment in which the factory is unable to continue running, despite all efforts to sustain the operation.
“To preserve the competitiveness of BSAF and a sustainable future for its employees, partners and stakeholders, the proposed closure of the PE plant is the only viable option.”
He said the proposal to close the plant was in line with the mid-to-long term business strategy of the Bridgestone Corporation which plans to strengthen its core tyre business.
BSAF has in recent years seen its financial performance come under pressure due to a variety of economic conditions and industry factors.
“We realise the affect the project will have on the personal lives of PE employees and we are committed to mitigate the affect of the proposed closure.
“Fair severance packages will be provided and where possible, skills will be redeployed,” Fourie said.
BSAF employs more than 2,000 people in the country.
HeraldLIVE
Bridgestone Port Elizabeth plant set to close with 250 jobs on the line
Image: FILE
Bridgestone’s Port Elizabeth plant faces possible closure with 250 jobs on the line.
This as demand for the tyres produced at the plant has declined.
The announcement by Bridgestone Southern Africa (BSAF) CEO Jacques Fourie on Thursday confirmed that staff had been issued with Section 189 notices.
The plant produces an older version of bias-industrial and off-the-road tyres that has seen a steady decline over the years.
The agricultural industry is shifting to radial tyres, which are longer lasting, and the production of which is modern and high-speed.
“To produce radial tyres an investment in a completely new multi-billion-rand plant would be needed, which is not feasible in the current economy.”
He said the shrinking economy and an influx of cheap imports added to this.
“All these technical and economic factors combined have created an environment in which the factory is unable to continue running, despite all efforts to sustain the operation.
“To preserve the competitiveness of BSAF and a sustainable future for its employees, partners and stakeholders, the proposed closure of the PE plant is the only viable option.”
He said the proposal to close the plant was in line with the mid-to-long term business strategy of the Bridgestone Corporation which plans to strengthen its core tyre business.
BSAF has in recent years seen its financial performance come under pressure due to a variety of economic conditions and industry factors.
“We realise the affect the project will have on the personal lives of PE employees and we are committed to mitigate the affect of the proposed closure.
“Fair severance packages will be provided and where possible, skills will be redeployed,” Fourie said.
BSAF employs more than 2,000 people in the country.
HeraldLIVE
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