Goodyear to phase out Tennessee plant

AKRON, Ohio, Feb. 10 (UPI) -- U.S. tire maker Goodyear said Thursday it will close its Union City, Tenn., facility by the end of the year, wiping out 1,900 jobs.

"While we are committed to manufacturing in North America, all of our plants must be cost competitive and be able to demonstrate sustainable world-class productivity," Chairman and Chief Executive Officer Richard Kramer said in a statement that also announced fourth-quarter sales up 14 percent from a year ago.

Revenue also rose, climbing 12 percent in the fourth quarter over the last three months of 2009.

In addition, cost savings were on target for the company's three-year plan, Goodyear said.

"The percentage of new products in our overall lineup is the highest ever and is driving record revenue per tire increases and continued success in targeted markets," Kramer said.

The corporate plan announced in 2009, however, included the reduction of 15 million to 25 million units of high-cost capacity globally. The plant closure in Tennessee will "eliminate approximately 12 million units of available capacity," Goodyear said.