KUALA LUMPUR, March 8 (Reuters) - Goodyear Tire & Rubber

Co ( GT ), one of the world's largest tire makers, plans to shut

down its plant in Malaysia on June 30 - a decision expected to

affect more than 500 employees, the company and Malaysia's

investment promotion agency said.

Goodyear said the decision to shutter the plant in the Shah

Alam district in Selangor state - which opened in 1972 - was

part of its Goodyear Forward corporate restructuring program,

aimed at delivering $1 billion in cost reductions by 2025.

"These decisions are not made lightly and we remain

committed to treating our associates with care and respect," the

company said in a statement on Thursday. "We will continue to

serve the Malaysia market with our industry-leading products and

solutions from other manufacturing sites within Goodyear's

footprint."

Goodyear has faced accusations of labour abuses, including

unpaid wages, excessive overtime and threats against dozens of

migrant workers at the Malaysian manufacturing plant in recent

years.

The company and the workers reached a settlement agreement

in 2022, with each employee paid 50,000 ringgit to 200,000

ringgit ($10,660 to $42,644) depending on the length of their

employment, Reuters reported.

In a separate statement on Friday, the Malaysian Investment

Development Authority (MIDA) said the closing of the plant would

directly affect about 550 employees.

The Malaysian government and Goodyear have been working to

establish a support framework to help those workers, including

upskilling and reskilling programmes and facilitating job

placements, MIDA said.

Malaysia has faced accusations from its Human Resources

Ministry and authorities in the United States of labour abuses

at its factories, which rely on millions of migrant workers to

manufacture everything from palm oil to medical gloves and

semiconductor chips.

The government has set a target of 2030 to eliminate forced

labour practices.

($1 = 4.6900 ringgit)