Alliance Tire to close by year end

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CEO Ygal Trichter: Closing the activity in Israel has become the only realistic option for Yokohama Rubber.

Following "Globes’" revelation yesterday that the company was on the point of closure, Alliance Tire Company CEO Ygal Trichter announced this afternoon that the company would in fact be shut down and that its 450 employees would be laid off. Hadera-based Alliance Tire is part of Japanese tire company Yokohama Rubber, which bought it in 2016 for nearly $1.2 billion. "Closing the activity in Israel has become the only realistic option for Yokohama Rubber" after an examination of production and shipping costs, Trichter said.

"After an in-depth examination of global trends by the parent company," Trichter wrote, "and the rising costs of production and shipping, the structural changes in the global tire industry, the competition in the sector, and the substantial decline in demand for the Israeli product, Yokohama regretfully decided to end its activity in Israel on December 31, 2024.

"Despite the substantial efforts we have made to improve the factory’s competitiveness, including making processes more efficient, cutting costs, and also adjusting the product mix to market demand, it is not possible to cope with the rapid changes that have overtaken the tire industry in recent years. The transfer of production centers to South Asian countries that are closer to sources of raw materials and cheap manpower has created a significant competitive advantage to those manufacturers. In the light of all these factors, shutting down the activity in Israel became the only realistic option for Yokohama."

Concerning the company’s employees, Trichter added, "As CEO of the company in Israel, I am aware of all the personal consequences for the company’s workers, and I undertake to make every effort to ensure that the layoff process is carried out respectfully, fairly, and honestly. The company’s management together with the workers’ committee will engage external companies to assist the factory’s employees in finding alternative jobs. The management will also make available external consultants to advise on the layoff process."

Published by Globes, Israel business news - en.globes.co.il - on November 14, 2024.

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