This comes after Goodyear SA announced it had initiated a Section 189A process to restructure its operations at its Kariega plant in the Eastern Cape, raising the spectre of possible job losses.

According to the chamber, located in the country's Eastern Cape province, the development reflects a worrying trend in the tyre manufacturing industry, with several companies under strain due to both domestic and global factors.

Chamber Chief Executive Officer Denise van Huyssteen said the industry is buckling under immense pressure from poor service delivery, unreliable infrastructure, and rising operational costs.

“This highlights the massive pressure which tyre manufacturers are under due to enabling environment issues such as logistic challenges, service delivery at a local level, inadequate maintenance of electricity, water and electricity infrastructure, increased costs relating to safety and security, above inflation costs for essential services, as well as cheap tyre imports that are flooding the market,” she explained.

Van Huyssteen also raised concern about the potential impact of proposed tariff increases by the United States (US) on global manufacturing, warning that such measures could further undermine SA’s industrial base.

“We continue to remain concerned about the viability of the manufacturing sector due to these basic enablers not being in place, as well as the impact of the US tariffs policies on global manufacturing footprints,” she said.

--SABC--