Sumitomo Rubber Plant Closed in May, Layoffs Continue to Increase
On November 7, 2024, Sumitomo Rubber announced that it would close its tire manufacturing plant in Tonawanda, New York in 2025. The latest news shows that the final closure date is set for May 15, and the number of layoffs has been increased.
Loss of 2.4 billion, 1,397 people were laid off in the 102-year-old factory
Sumitomo Rubber reported that the number of affected workers is currently 1,397, 17 more than the number announced at the end of 2024. The plant was originally scheduled to be officially closed on February 15, but for some reasons, the closure time was postponed to May 15.
Sumitomo Rubber submitted its factory worker adjustment and retention notice (WARN) to the New York State Department of Labor in February and reported the above changes. It is reported that the 1,200 workers at the plant belong to the United Steelworkers (USW), which represents the rights and interests of these workers. Announced on November 7, 2024. Sumitomo Rubber announced the permanent closure of its New York State plant due to continuous losses and high costs.
In the latest statement, Sumitomo Rubber said: "After a comprehensive analysis of various business complexities, including increasing manufacturing raw materials and logistics costs, outdated infrastructure, intermittent financial performance and changing market conditions, we conducted an in-depth study of the feasibility of the plant and subsequently closed the plant.
This assessment is based on Sumitomo Rubber's broader strategy to ensure the long-term sustainability of the Sumitomo Rubber Group in the competitive international tire market." Sumitomo Rubber also stated that it will dissolve Sumitomo Rubber America LLC, a subsidiary of Sumitomo Rubber that oversees the manufacturing plant. In 2022, Sumitomo Rubber also pledged to invest $130 million to upgrade and expand the facility to produce more high-value tires. But after two years of high pressure, Sumitomo Rubber finally decided to abandon the operation of the plant.
Sumitomo Rubber America Plant
Sumitomo Rubber has been operating the plant since Goodyear and Sumitomo Rubber dissolved their 16-year business alliance in 2015. Originally, the plant was founded and put into production by Dunlop Tire Co., Ltd. in 1923.
Dunlop operated the plant as an independent entity until the Goodyear-Sumitomo Rubber Alliance was completed in 1999.
After 2015, Sumitomo Rubber operated the plant. But from 2021 to 2023, the plant lost more than $325 million (RMB 2.4 billion), and in fiscal 2023, the plant only generated $455 million (RMB 2.3 billion) in sales revenue. In 2024, Sumitomo Rubber applied for $310 million (RMB 2.2 billion) in costs at the plant to cover the costs of actions required to close the plant. It is reported that Sumitomo Rubber's US plant is one of three US tire plants that have been or will be closed.
On January 23, 2025, Bridgestone Americas Inc. announced plans to close its truck and bus tire plant in Lavergne, Tennessee by July 31, affecting 700 employees and hourly workers. In February, Yokohama announced that it would permanently close its Yokohama Trelleborg Wheel Systems (TWS) tire manufacturing plant in Spartanburg, South Carolina.
Less than two years ago, the Japanese tire maker acquired the plant as part of its $2.3 billion acquisition of Trelleborg Tire & Wheel Systems. The plant opened in January 2016 and produces radial agricultural tires under the Trelleborg brand. In addition, Goodyear is also phasing out truck and bus tire production capacity at its Danville, Virginia plant.
