Goodyear Tire & Rubber Company plans to close its chemical manufacturing facilities in Niagara Falls, New York, and Bayport, Texas, in a restructuring expected to eliminate approximately 85 jobs and be substantially completed by the end of 2027. The company approved the rationalization plan on September 29, 2026, as it continues to streamline operations and focus resources on its core tire business. Goodyear expects the closures to result in pre-tax charges of $55 million to $75 million, including approximately $30 million in cash costs associated primarily with plant decommissioning, employee-related expenses and other exit activities. Once implemented, the measures are expected to improve operating income in Goodyear’s Americas segment by approximately $15 million to $20 million annually beginning in 2027.

Two US chemical plants included in closure plan

The restructuring affects Goodyear’s chemical manufacturing operations in Niagara Falls and Bayport. Both facilities support the tire and rubber value chain through production of chemical materials and additives used in rubber manufacturing.

Goodyear expects the rationalization program to be substantially completed by the end of 2027. Approximately 85 positions will be eliminated across the two facilities, although the company has not publicly specified how the reductions will be divided between the sites.

Goodyear expects up to $75 million in restructuring charges

Total pre-tax charges related to the closures are expected to range from $55 million to $75 million. Approximately $30 million of this amount is expected to involve cash expenditures, primarily for plant decommissioning, employee-related obligations and other costs associated with exiting the operations.

The remaining expenses are expected to be non-cash charges, consisting mainly of accelerated depreciation and other asset-related costs.

Majority of cash spending expected by end of 2027

Goodyear expects to recognize approximately $35 million in pre-tax charges during the third quarter of 2026 and another approximately $15 million during the remainder of the year.

Most of the cash outflows related to the restructuring are expected to occur by the end of 2027, corresponding broadly with the timetable for completing the plant closures.

Closures expected to improve Americas profitability

The company estimates that the rationalization measures will improve Americas segment operating income by approximately $15 million to $20 million annually beginning in 2027.

The savings are expected to result from elimination of operating costs associated with the two chemical manufacturing facilities and form part of Goodyear’s wider effort to simplify its industrial footprint and improve profitability.

Niagara Falls plant has long history in rubber chemicals

The Niagara Falls facility has operated for decades as part of the US rubber chemical supply chain. Its products have included specialty chemicals used to protect rubber compounds against deterioration caused by oxygen, ozone, heat and repeated flexing.

Such additives are important to tire and technical rubber manufacturing because they help maintain durability and performance throughout the service life of rubber products.

Plants remained after previous chemical business divestment

The Niagara Falls and Bayport sites were among the chemical assets retained by Goodyear following the company’s earlier divestment of most of its chemical business. Their planned closure further reduces Goodyear’s direct involvement in chemical manufacturing.

The decision reflects a continued shift toward concentrating capital and management attention on tires and related businesses rather than maintaining a broader portfolio of upstream chemical production assets.

Closure could affect rubber additive supply chains

The shutdown of established chemical production capacity may also affect parts of the North American tire and rubber supply chain. Tire manufacturers depend on a range of specialized antioxidants, antiozonants and other additives, and changes in domestic production can increase the importance of alternative suppliers and imported materials.

Rubber compound formulations typically require extensive testing and qualification when raw material suppliers or specifications change, making continuity and consistency important considerations for manufacturers.

Goodyear continues to streamline manufacturing footprint

The planned closure of the two chemical plants is another step in Goodyear’s broader restructuring and portfolio simplification efforts. By exiting these remaining operations, the company expects to reduce costs and concentrate more closely on its principal tire manufacturing and mobility businesses.

For the wider tire and rubber industry, the move represents a significant change in the North American supply chain for specialty rubber chemicals, with the full effects likely to become clearer as production is wound down through 2027 and customers transition to alternative supply arrangements.

Original report by Rubber News.