The Goodyear Tire & Rubber Co. said this week it expects to cut 1,100 jobs at two of its Dunlop tyre plants in Germany as part of a plan to modernise tyre manufacturing facilities and curtail production.

The decision to curtail the production of less profitable tyre segments led to the job cuts, according to MarketWatch. After the announcement, Goodyear’s stock rose 1.7% in morning trade. The Akron, Ohio-based tyremaker said it expects to record charges of $135 million with $90 million recorded in the first quarter of 2019 as a result of the facility rationalisation plan, which is expected to be completed during 2022.

The facilities in the plan are the Dunlop Tires Germany GMbH facilities in Hanau and Fulda. The company is planning for changes to the layout of the plants as well as efficiency gains from new equipment. The upgrades are meant to improve Goodyear’s competitiveness and increase production of premium consumer tyres that are 17 inch and larger in diameter, the Akron Beacon Journal reported.

Goodyear said the changes are expected to boost operating income for its Europe, Middle East and Africa business by an annualised $60 million to $70 million over a three-year period beginning in 2020, MarketWatch reported. In 2017, Goodyear closed its Philippsburg, Germany, Dunlop tyre plant, where 890 people worked, The Beacon Journal reported.