News from Notch Consulting, Inc.

September 30, 2008

Goodyear Idles NA Tire Plants Due to Raw Material Shortages

Filed under: Carbon Black, General, Rubber Chemicals, Tires — Notch @ 12:18 pm

Goodyear has become the second North American tiremaker to announce it is idling production due to raw material shortages. Last week, Cooper announced that it was suspending production at its North American plants from September 23-28 due to shortages.

Yesterday, the Gadsden Times reported that Goodyear planned to idle its plant in Gadsden, Alabama for one week, from Saturday, September 27 until Sunday, October 5. In addition, four other Goodyear plants have taken days off, while three others have reduced daily production.

In the article, a Goodyear spokesperson said that Goodyear’s plants in Bayport, Beaumont and Houston were affected by the recent hurricanes and were not able to provide Goodyear’s tire plants, including Gadsden, with raw materials used in tire manufacturing. Goodyear’s Houston and Beaumont plants produce synthetic rubber while the Bayport plant produces chemicals. The spokesperson said other plants in that area were not able to provide Goodyear with other materials used in tire making due to hurricane-related damage and disruptions. The material shortage includes carbon black, chemicals, and other materials.

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