On the last day of January, the management of Goodyear EMEA and Goodyear Dunlop Tires Europe B.V. announced the company’s plan to exit the agricultural tire business within the Europe, Middle East and Africa (EMEA) region.

At the same time, the sword that has hung over the tiremaker’s Amiens Nord factory in France finally fell, with Goodyear Dunlop confirming that the plant, which produces almost 60% of all agricultural tires manufactured within the EMEA region (and also produces passenger car tires), will close.

In a written statement, Arthur de Bok, president of Goodyear EMEA and chairman of Goodyear Dunlop Tires Europe, explained: “The company’s intention to exit the EMEA farm tire business is consistent with our strategy to strengthen Goodyear’s focus on its core businesses.”

According to Goodyear Dunlop, agricultural tire capacity at the Amiens Nord plant is 650 tires a day. Within the EMEA region its output is supplemented by production in Poland and Turkey; in total, Goodyear Dunlop produces around 1,000 agricultural tires per day at EMEA facilities.

The tiremaker made no secret of the fact it considered production in France an ineffective option; reporting the Amiens Nord plant’s closure in a statement, Henri Dumortier, managing director of Goodyear Dunlop Tires France, said that the Amiens Nord plant (both passenger car and agricultural production) generated a 61 million euro loss in 2011.

“We are deeply disappointed that the five past years of negotiations haven’t allowed us to reach a compromise with the employees’ representatives,” the statement read. “Today’s announcement is the only remaining option that we have.”

Goodyear Dunlop Tires France has presented its Amiens Nord Factory closure plan to the Central Works Council. The plan remains subject to the finalization of the consultation of employee representatives. Details of any scheduled cutbacks in Poland and Turkey have not been announced. A Goodyear Dunlop spokesperson told Tyres & Accessories that, “since [the Goodyear Dunlop operations in] Poland and Turkey are listed companies, local management will make an impact assessment for their company.

Should the Amiens Nord closure gain approval, 1,173 jobs (or 1,250, according to some figures) will be lost. The CGT (Confédération générale du travail or General Confederation of Labour) union, however, does not intend to take the decision lying down. According to the Le Parisien newspaper, CGT workers’ representative Frank Jurek declared that the union would “fight the battle to the end.” And in a statement published by the union, another CGT workers’ representative, Mickaël Mallet, said “the battle began five years ago and will continue, whatever the decision.”

Goodyear has already retreated from the agricultural tire business in some regions. In 2005 it sold its North American agri business to Titan International, along with two factories, and in 2011 Goodyear’s Latin America business was acquired by Titan, along with a factory in Brazil.

Titan’s original plan also involved Goodyear’s European agricultural business; in September 2009 Titan signed a letter of intent with Goodyear to acquire “certain farm tire assets,” including the Amiens Nord factory. At the time Titan noted, as a formality, that the European agreement was subject to Goodyear Dunlop Tires France’s “satisfactory completion of a social plan related to consumer tire activity.”

And so began the drama. On Dec. 13, 2010, Titan announced its acquisition of the Amiens Nord plant and the license to produce Goodyear brand agricultural tires in Europe, even as the completion of a social plan related to the discontinuation of consumer tire production couldn’t be reached. Enraged Amiens Nord workers took to the streets and burned tires in protest, while the CGT vigorously opposed the move. Titan blamed the unions representing Amiens Nord workers for sabotaging the deal.

“It shows how screwed up things are in France when a company tries to save jobs,” fumed Titan chairman and CEO Morry Taylor at the end of 2011. “Titan has other acquisitions that have been on hold while the put option was still active. Now Titan will pursue those options instead of waiting for the French union to start thinking about their members.

“Titan spent a lot of time and money trying to get Goodyear’s social plan approved but only a non-business person would understand the French labor rules. The French workers are very good at what they do when they work, but as I told the union personnel, you cannot get paid seven hours for three hours of work.”

The put option Goodyear had for its Amiens Nord plant expired on Nov. 30, 2011, and Titan wasted no time withdrawing from the acquisition agreement.

Goodyear says its Asia Pacific agricultural tire business is not impacted by the company’s latest action. (Tyres & Accessories)