Alliance Tire to close by year end

After Globes revealed yesterday that the company was about to close, Alliance Tire Company CEO Ygal Trichter announced this afternoon that the company will indeed be shutting down and that its 450 employees will be laid off. Hedera-based Alliance Tire is part of Japanese tire company Yokohama Rubber, which it bought in 2016 for nearly $1.2 billion. “Closing activity in Israel has become the only realistic option for Yokohama Rubber” after examining production and shipping costs, Trechter said.

“After an in-depth study of global trends by the parent company, rising production and shipping costs, structural changes in the global tire industry, competition in this sector, and a significant decline in demand,” Trechter wrote. As for the Israeli product, Yokohama has unfortunately decided to end its activity in Israel on December 31, 2024.

“Despite the great efforts we have made to improve the competitiveness of the factory, including making operations more efficient, reducing costs, as well as adjusting the product mix according to market demand, it is not possible to cope with the rapid changes that have overwhelmed the tire industry in and in recent years.” “The transfer of production centers to South Asian countries closest to sources of raw materials and cheap labor created a significant competitive advantage for those manufacturers, and in light of all these factors, closing activity in Israel became the only realistic solution for Yokohama.”

Regarding the company’s employees, Trechter added: “As the CEO of the company in Israel, I am aware of all the personal consequences for the company’s workers, and I pledge to make every effort to ensure that the layoff process is carried out with respect and fairness, and frankly, the company’s management, in cooperation with the workers’ committee, will involve companies Management will also provide external consultants to advise on the layoff process.

Published by Globes, Israel Business News – en.globes.co.il – on November 14, 2024.

© Copyright Globes Publisher Itonut (1983) Ltd., 2024.