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TAIPING: The Silverstone factory in Kamunting will close its store in June, after 30 years of operation.
The day before the public announcement of Toyo Tires, the plant management had already notified its staff.
An employee, who did not want to be identified, told FMT that it was understood that everyone who worked at the factory should be fired.
He said he first shrugged off the closure as a long-time rumor, and was genuinely surprised when he received the notice from management.
“I can’t help but feel lost right now, because it’s so hard to find work these days due to the closure, but what else can I do?” He said. “Hopefully, we will get a decent compensation.”
According to the notice, the plant’s human resources department will meet with employees to give a more detailed explanation and clear up any lingering questions.
“Tires made under the Silverstone brand will now come from other Toyo Tires plants,” he said in an ad that soon circulated on Facebook.
The ad said that Toyo Tires Corporation had discovered that the 30-year-old plant was falling behind in several respects.
“This is compounded by the effects of Covid-19, which has effectively disconnected businesses,” he said. “Increasing competition from tire manufacturers in neighboring countries also plays a role.”
The notice also assured that the corporation would honor all the terms and conditions specified in the collective agreement, as well as the law in reducing the factory’s personnel.
In 2010, Toyo Tires had bought Silverstone for RM462 million as part of its plan to expand its operations through the Silverstone market.
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