KUALA LUMPUR: KUALA LUMPUR: The Ministry of Investment, Trade, and Industry (MITI) and the Malaysian Investment Development Authority (MIDA) are taking proactive measures regarding Goodyear's plan to shutter its Shah Alam manufacturing facility.

In a statement released today, they clarified that Goodyear and its shareholders had collaborated closely with the government before the decision was made public.

The closure of the Shah Alam plant, in operation for 52 years, effective June 30, will impact approximately 550 workers.

Established in 1972, the Shah Alam factory has been a cornerstone of Goodyear's presence in Malaysia, signifying the company's longstanding commitment to the regional economy and automotive sector.

The local labour force will be significantly affected by the plant's shutdown.

Concerns have arisen regarding the fate of the 180 Goodyear AutoCare locations nationwide.

Nathaniel Madarang, Goodyear Asia Pacific president, said that the Shah Alam plant closure is part of the 'Goodyear Forward' transformation program aimed at optimising the company's operations and portfolio, achieving substantial margin expansion, and enhancing shareholder value.

In a widely circulated memo on social media platforms, Madarang emphasised that the program entails specific measures to achieve annualized cost reductions of US$1 billion by 2025, ensuring Goodyear's competitiveness and leadership in the industry.