TONAWANDA, N.Y. — Sumitomo Rubber USA, which manufactures tires, announced Thursday that it is closing its 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 1,200 hourly and 350 salaried employees.
Initially, workers weren't notified by the company about the closure. Sumitomo sent out a press release around 10 A.M., and employees received email notifications around 12:15 p.m., according to multiple workers 2 On Your Side spoke with.
"This was a blind side," Jeff Linton said. "Walking out of here and getting a job that pays this [well] is going to be hard for a lot of guys."
Until Thursday, Linton worked at the Sumitomo plant, which was formerly owned by Dunlop, for 34 years.
"I have family that works here," Linter said. "They only got, 10 years they're looking at, they were trying to get another 20 years out here."
According to multiple sources, state officials didn't get confirmation that this closure would actually happen until Sumitomo put out its press release Thursday morning.
In a press release, Sumitomo says that "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."
Sumitomo Rubber Industries LTD, which operates the Tonawanda plant, recorded record profits and sales in 2024. The company reported a 248.5% increase in profits from its tire division, according to the industry publication Modern Tire Dealer.
"It's a disbelief," said Gary Pelletier, a 29-year veteran of the plant. "I don't know really what to feel yet."
The company says they are working with the United Steelworkers Union Local 135, which represents the hourly employees, to negotiate severance packages. They also said they will provide job placement support services for all employees impacted.
The United Steel Workers released a statement saying, "Our union has partnered with Sumitomo for years, helping to secure investments, as together we’ve navigated the ups and downs of the tire industry. That management went straight to enacting this extreme measure without coming to us is nothing short of a betrayal of its highly-skilled, dedicated workforce."
In a letter from Sumitomo Rubber to suppliers and vendors, the company says that there will be no disruption in payments, and that they are talking to customs and suppliers to address concerns about existing orders and deliveries, as well as contract obligations.
Temporary shutdown before closure
The Tonawanda plant was actually in the middle of a week-long shutdown when its Japanese owners announced the full closure of the facility.
Several workers tell 2 On Your Side that the company was shutting down for the week to try and move/sell excess tire inventory.
"They shut us down for a week, it's paid," said Deonte Sweat, who worked at the plant for two years before Thursday's closure. "They just didn't notify us about any closures or anything."
Eric Dutschman worked overtime on Sunday at the Sumitomo plant, preparing for the weeklong shutdown.
"It seemed fishy at the time a little bit, but we've had a lot of inventory in the warehouse, more more than normal," Dutschman said. "I'm thoroughly disgusted. I have nine years here. I'm a member of our emergency response team and fire department here as well."
2 On Your Side has been told that Sumitomo was close to selling the facility to another manufacturer with the possibility keep the plant open and operating, but at the last minute the deal fell through. The source didn't reveal, however, who Sumitomo was in talks with for a possible sale.
According to the PR firm hired by Sumitomo to relay messaging to local media and lawmakers in Western New York, the Sumitomo Corporation board met on Tuesday and made the final decision shut down the plant.
But multiple sources with direct knowledge of the decision to shut down the facility tell 2 On Your Side that the plan has been secretly "in the works for months."
One source told WGRZ that local management "100% knew for months that the closure would happen this week."
Sources also told 2 On Your Side that the temporary shutdown was used as an excuse to ensure workers were kept out of the plant while management prepared for the closure.
A fencing company was brought in on Thursday morning to fence off the entrances surrounding the plant.
"It's hard to imagine a fencing company just happened to be around on a Thursday morning for a last minute job," one source told WGRZ.
A website that was created to inform the public about the decision to shut the facility down was registered on Oct. 9, 2024, according to public WHOIS records — which is a very common database used to determine when a website was created.
Security guards, who were wearing tactical gear including body armor, were posted at several entrances after the announcement was made.
Political response
New of the abrupt closure has reverberated throughout the political sphere of Western New York.
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.”
New York Governor Kathy Hochul's office shared this statement to 2 On Your Side's Nate Benson:
"As a lifelong Western New Yorker, Governor Hochul understands the fear and outrage that workers are feeling in response to the sudden closure of Sumitomo Rubber. The Governor is committed to using every tool in the State's arsenal to support the more than 1,500 workers and their families impacted by this closure, which is why she has directed the New York State Department of Labor to activate its Rapid Response Team to provide immediate resources to these employees that will help them find new jobs and ways to support their families. Governor Hochul is committed to the economic future of Western New York and will continue her tireless efforts to bring new businesses and good-paying jobs to the region."
We will continue to keep this story updated as more information becomes available.