Goodyear Tire & Rubber Co. has announced that a recent fire at its factory in Debica, Poland will have a significant impact on its sales in the third and fourth quarters of this year. The company estimates that the fire will result in a revenue loss of $20 million to $25 million in Q3 and $10 million to $15 million in Q4 across the Europe, Middle East, and Africa region.
The fire, which occurred on August 20th, caused significant damage to a section of the tire-curing area and led to the temporary shutdown of the factory. While production has since resumed, the factory is currently operating at about 70% of its capacity. Goodyear expects that it will not be able to reach full production until the end of 2024 due to the lead time required for replacing the damaged equipment.
In order to minimize the impact on customers, Goodyear plans to leverage its existing inventory and increase production at alternative facilities. These measures should help offset the lost production until the Debica factory can fully resume operations.
Despite the challenges posed by the fire incident, Goodyear remains committed to meeting customer demands and ensuring a seamless supply chain for its products. The company recognizes the importance of maintaining its strong presence in the European, Middle Eastern, and African markets and will continue to work diligently to mitigate any disruptions caused by this unfortunate event.
