TONAWANDA, N.Y. — Sumitomo Rubber USA, which manufactures tires, announced they were closing their Tonawanda facility.
Sumitomo makes automotive tires for passenger cars, trucks, buses and motorcycles. Production at the Tonawanda facility has already been halted.
The closure will impact 1,550 hourly and salaried employees, who have been notified of the closure.
In a press release, Sumoito says despite trying to put cost-cutting measures and efficiency enhancements in place, the viability of the facility, rising costs for materials and logistics, dated infrastructure, intermittent financial performance, and changing market conditions were some of the reasons for the closure.
The company says they are working with the United Steelworkers Union Local 135, which represents the hourly employees to negotiate severance packages. They also say they will provide job placement support services for all employees affected.
Sumitomo Rubber says they are talking to customs and supplies to address concerns about existing orders and deliveries, as well as contract obligations.
Town of Tonawanda Supervisor Joseph Emminger issued the following statement:
"We have been made aware of Sumitomo Rubber USA’s announcement. Our first thoughts are with the more than 1,500 workers and their families who are impacted by this sudden plant closure. This is a very difficult time for them as they begin to deal with this unexpected news. They need to know the Town of Tonawanda stands with them. I will have more to say at a later time."
Erie County Executive Mark Poloncarz issued the following statement:
"The sudden closing of Sumitomo Rubber’s Tonawanda facility came as a complete surprise. It also appears that workers at the facility, including those in management, were unaware that a closure was imminent, at least until late last night when I also was made aware of the situation. It appears this decision was made by the Japanese owner’s board without any discussion with local and state officials about the possibility of closure. At no point did Sumitomo ask for any additional assistance to remain in operation, despite the fact we have always supported their efforts to succeed here in Erie County with tax incentives and assistance through the Erie County Industrial Development Agency.
In fact, as a board member of the Erie County Industrial Development Agency, I supported a $1.8 million combined sales and property tax incentive in 2021 as part of Sumitomo’s then $129 million investment in the facility, as well as in 2017 a $1.2 million sale and property tax incentive package in concert with Sumitomo’s $9.7 million investment then.
I have already spoken to Governor Kathy Hochul and other officials about the situation, and we will continue to work with our partners to make every effort to keep the facility open and save jobs, if possible.
Finally, to the 1,500 employees affected by this harsh foreign corporate decision, we in Erie County government will do all we can to keep the plant open, and if the closure is indeed permanent, we will work with you in earnest to secure new employment here in the community you call home.”
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We will continue to keep this story updated as more information becomes available.