Goodyear Tire & Rubber, Akron, OH, said it intends to close a high-cost tire plant in the U.K. as part of its strategy to reduce costs in its worldwide operations.

Goodyear Tire & Rubber, Akron, OH, said it intends to close a high-cost tire plant in the U.K. as part of its strategy to reduce costs in its worldwide operations. The company has initiated a process to close its Goodyear Dunlop Tyres UK passenger tire factory in Washington, where it has begun consultation with union representatives. The action is expected to create annual savings of approximately $20 million. In addition, Goodyear will cease production of bicycle tires and inner tubes at its Debica, Poland, facility. Cost reduction actions in logistics, retail and administration will be taken in the company's European Union, Asia Pacific and Engineered Products business units. In total, the actions are expected to eliminate about 1,500 positions and create annual savings of between $40 million and $50 million.

Goodyear has increased its ability to substitute synthetic rubber for natural rubber, taking advantage of cost differences between the two raw materials. New proprietary polymers and rubber compounds developed at the company's technical centers in Akron, OH, and Luxembourg will allow Goodyear to freely replace more than 15% of its natural rubber usage without impacting tire performance. The International Rubber Study Group estimates that the tire industry's substitution capability is less than 8%. Tire makers, according to the IRSG, consume about 70% of the world's natural rubber production.