International tyre brand’s factory in South Africa at risk

South Africa’s tyre manufacturing sector has been under pressure for years, facing threats like illegal tyres, cheap Chinese imports, and difficult local trading conditions.

Now another international brand is facing mounting pressures, with Continental reportedly considering its own future on the back of a tough 2025.

This came to light during a briefing by the Department of Trade, Industry and Competition on the implementation of the South African Automotive Master Plan.

During the briefing, Irvin Jim, General Secretary of the National Union of Metalworkers of South Africa (Numsa), warned that South Africa’s manufacturing sector is facing increasing contraction and job losses.

“This is not just a job loss blood bath but a socio-economic catastrophe. We are facing plant closures in the tyre sector,” he told the Portfolio Committee on Trade, Industry and Competition.

“We lost the Bridgestone Plant in 2019 in Gqeberha and the Goodyear Plant last year, which employed 900 workers, and Continental Tyres, now in January 2026, has painted a bleak picture of its market outlook in the tyre sector.”

Jim told the committee that Continental told the trade union that it has a massive spare capacity, as annual production allocation has been cut from 2.3 million tyres per year to 1.7 million.

“If they do not turn around this picture in the next nine months, they will follow a similar fate to Goodyear.”

“Sumitomo in Ladysmith is also threatening retrenchments and is also facing a plant closure,” said Jim.

TopAuto reached out to Continental in South Africa to gauge the severity of the situation.

“Continental Tyre South Africa does not comment on rumours or third-party assertions regarding internal discussions,” a spokesperson for Continental told the publication.

“The company continuously reviews its operations to ensure long-term sustainability and competitiveness in a currently challenging operating environment.”

“Continental remains committed to constructive engagement with employees, unions and industry stakeholders, and to its continued participation in the South African automotive sector.”

The spokesperson also told TopAuto that the company is currently not in a position to provide any additional comment.

Regarding Jim’s comments on Sumitomo – or Dunlop Tyres South Africa – the company’s CEO, Lubin Ozoux, told TopAuto that no announcements have been made regarding retrenchments at its uMnambithi (formerly Ladysmith) operation.

“As with all responsible businesses, we continuously assess and optimise our operations to ensure long-term sustainability,” he said.

“Dunlop plays a vital role in the uMnambithi economy as we are one of the largest employers in the town, and over the years we have invested billions of rands into production infrastructure and equipment to support our manufacturing output and sustainability.”

South Africa’s troubled tyre sector

In 2020, Bridgestone announced the closure of its factory in Gqeberha – then Port Elizabeth – in line with its mother plant’s mid-long term business strategy.

“Bridgestone Southern Africa (BSAF) has, in recent years, seen its financial performance come under pressure due to a variety of economic conditions and industry factors,” the manufacturer said at the time.

“In addition, Bridgestone’s Port Elizabeth plant is specifically geared towards the production of older bias tyres, which are globally in decline and being phased out in South Africa, as it is an unprofitable market.”

“The effects of a shrinking economy and an influx of cheap imports, compounded by rapid changes in the tyre industry, have prompted BSAF to restructure its operations.”

Last year, Goodyear announced that the company would transform its go-to-market strategy in the Europe, Middle East and Africa region to optimise its footprint and portfolio.

“As part of that transformation, Goodyear South Africa is launching a restructuring process in accordance with the provisions of the Labour Relations Act to address proposals regarding the closure of its manufacturing facility in South Africa and the realignment of certain sales, administration and general management functions,” it said.

As factory closures rack up and further pressures mount, Numsa is calling on the South African government to protect the tyre manufacturing sector against dumping from India, China and Cambodia.

“As was done decisively in the scrap metal sector, the government, through DTIC, must ban the importation of tyres into the domestic market,” said Jim.

“It should also increase tariffs so that when the tyre sector stabilises, and the ban is lifted, there is an increased level of protection for local jobs and industry.”

He noted that the implementation of a ban has become more important and urgent than ever.

“Before we know it, we will have no tyre sector in this country. As things stand, we are seeing a dying industry,” declared Jim.

Ozoux said Dunlop welcomes the increased focus by the government on addressing the impact of low-cost imports across industries, including tyres.

“Creating a fair and competitive environment is essential to supporting local production, protecting jobs, and enabling continued investment in South Africa,” he said.