The massive industrial building that once housed Goodyear SA’s tyre plant in Kariega was put up for sale last week.
For many former employees, the news was a crushing blow.
Many were holding on to the hope that government intervention or a new investor would step in to save the plant, reinstate lost jobs and keep livelihoods intact.
However, while the uncertainty remains, the department of trade, industry and competition has not completely shut the door on possibly finding and bringing in an investor to take over the plant.
On January 12, the industrial property situated in the Alexander Industrial Area was listed for sale on Property24.
According to the ad, the property, situated in an established industrial and automotive hub in Kariega, offers about 107,000m² of industrial and warehouse improvements on a site of about 245,000m².
It is being marketed as suitable for owner-occupiers, investors and developers, with additional bulk available for development and high-power infrastructure ideal for large-scale industrial users.
The plant and machinery are also available, and can either be purchased with the property or separately.
The sale will be handled exclusively by Cushman & Wakefield | BROLL via an open market tender.
According to the ad, interested parties are required to sign non-disclosure agreements to access detailed information and register their expressions of interest via Grant Longworth or Angus Murray.
Asked if there had been any interest in the property since it was listed for sale, broker Angus Murray, from Cushman & Wakefield, said that information could not be shared.
“Goodyear, the seller, is open to considering bids from interested parties for purchase of the fixed assets and machinery in whole or in part.
“Goodyear South Africa has appointed C&W | BROLL to facilitate the transaction [and] interested buyers are invited to submit their bids.”
In August, the Goodyear plant in Kariega permanently shut its doors, leading to 907 job losses.
The closure, which caught many by surprise when the announcement was made in June, ended 78 years of production.
After the closure and retrenchment payouts to employees, some of the former workers were targeted by criminals demanding cash.
On Sunday, a former Goodyear employee was shocked to learn of the sale, saying he was disappointed.
He said rumours had circulated among the former employees that investors from Asia would take over the plant.
“I heard those rumours last year, where people said that the Chinese were there, checking out the place and stuff like that, and some of the people who were working inside cleaning the machines and stuff told some of the guys that the Chinese were walking through.
“They were [allegedly] told to go out so that the visitors could check the plant.
“That was around October-November.”
The man said he had not been aware that the property had been put up for sale.
“It’s shocking because we were hoping that the Chinese would take over and start a new company.
“We are praying about this because obviously we want the plant to open again, and that operations will start.
“But now, if they sell the building, what is going to happen then?
“Who’s going to take over because the government said they were going to do something but now they are also quiet.”
He said the National Union of Metalworkers of SA (Numsa) had also gone quiet, adding there were still some outstanding matters that needed to be resolved.
Another ex-worker said the rumours about an Asian company taking over the plant had started circulating in 2025.
“It’s a rumour because we were told there’s a company that’s going to acquire the plant but nothing has been communicated to us officially.”
It is understood that at least two companies have expressed interest in the sale of the Kariega property.
In August, trade, industry and competition deputy minister Zuko Godlimpi said the government was looking for a technical partner to help it acquire Goodyear SA.
Speaking at a post-G20 ministers meeting in Gqeberha, Godlimpi said negotiations to revive jobs and operations were at an advanced stage.
“The matter is being attended to,” Godlimpi said.
“The work that the [trade and industry department] and Numsa are doing is progressing very nicely and we are convinced the facility will be in operation sooner rather than later.
“So I will leave it at that.”
Asked for an update on this quest last week, the department’s spokesperson, Bongani Lukhele, said: “The negotiations are still continuing between Goodyear, the IDC and the potential investor.”
The Herald
