TONAWANDA, N.Y. — Sumitomo Rubber announced on Thursday that it is set to shut down its tire manufacturing facility in western New York, resulting in the loss of all 1,550 jobs, which include both union and salaried positions.
The Japanese corporation explained that its efforts to manage expenses and invest in the outdated plant were insufficient to counterbalance the increasing financial deficits. In a statement, Sumitomo remarked that “the plant closure is mainly attributed to overall facility performance within the fiercely competitive global tire market. This challenging decision follows an extensive analysis over several years of the company’s financial health and market dynamics.”
The company indicated that it had made attempts to salvage the Tonawanda site, which is located near Buffalo, by seeking potential buyers but sadly received no interest. Erie County Executive Mark Poloncarz noted that Sumitomo had recently devoted $140 million to upgrades at the facility, which included $129 million invested in 2022 alone.
Established in 1923, the plant saw Sumitomo gain full ownership in 2015 after dissolving a joint venture with Goodyear Dunlop Tires North America. The abrupt announcement of the closure has shocked local officials and workers alike.
Poloncarz expressed concern, stating, “It seems this decision was made by the board in Japan without any prior discussion with local and state officials regarding the potential for closure.” He added that throughout their time in Erie County, Sumitomo had not requested any additional help to remain in business, despite the consistent support provided through tax benefits and resources from the Erie County Industrial Development Agency.
While tire production ceases, the company stated that overall operations would gradually decline over the next one to two years, with plans to transfer production throughout its global network. Additionally, the company is collaborating with the United Steelworkers Union Local 135 to arrange severance packages for affected employees.