Goodyear Tire & Rubber Co said it will close its tire plant in the Philippines by the end of the third quarter, as it tries to cut production capacity to cut costs by $700 million this year.
The closure of the plant in Las Pinas will result in 500 job losses from the company's 600 in the Philippines, and curtailment of nearly two million units of annual production capacity, the company said in a statement.
Goodyear, the largest U.S. tire maker, said production from the plant will be transferred to lower-cost plants in the Asia-Pacific region.
The company plans to eliminate 5,000 jobs worldwide in 2009 -- or 6.7 percent of its staff.
Goodyear, like other auto parts suppliers, has come under intense pressure from U.S. auto sales at nearly three-decade lows and a steep downturn in consumer demand that has prompted major automakers to slash output.
The company will record about $20 million in charges associated with the closure in the third quarter of 2009, principally for non-cash asset write offs.
Shares of the company closed at $12.61 Thursday on the New York Stock Exchange.
(Reporting by Hezron Selvi in Bangalore; Editing by Mike Nesbit)