New York Tire Plant Closing Down, Resulting in Over 1,000 Job Losses

A century-old Dunlop tire factory in New York is shutting down, leaving at least 1,380 workers jobless as manufacturing moves abroad.

At a Glance

Sumitomo Rubber is shutting down its Tonawanda, NY tire plant, eliminating over 1,000 jobs.
The closure is due to financial losses and competitive pressures in the international tire market.
A recent $140 million investment and cost-control efforts failed to offset losses.
Attempts to find a buyer for the plant were unsuccessful.
Production will transition to other global locations over the next one to two years.

Closure of Historic Tire Factory

Sumitomo Rubber is reportedly closing its tire manufacturing plant in Tonawanda, New York in February. The decision to shutter the century-old factory, which has been producing Dunlop tires since 1923, results in the loss of at least 1,380 jobs. This development marks another blow to American manufacturing and continues the trend of production shifting overseas.

The first 1,245 employees were let go on November 11 and 15, while the rest will depart when the plant fully closes down. Initial reports stated 1,550 jobs would be lost, but a recent Worker Adjustment and Retraining Notification Act letter put the overall number at 1,380.

The closure comes despite recent significant investments in the facility. Sumitomo had poured $140 million into the plant, with $129 million invested as recently as 2022. However, these efforts, along with attempts to control costs, proved insufficient to keep the operation viable in the face of intense global competition.

NY factory that makes Dunlop tires shuttered, 1,500 workers fired as Japanese owner moves manufacturing overseas https://t.co/xhLUqcltEw pic.twitter.com/TzaVbaiuln

— New York Post (@nypost) November 20, 2024

Financial Struggles and Market Pressures

Sumitomo cited financial difficulties and competitive pressures in the international tire market as the primary reasons for the plant’s closure. The company had been grappling with these challenges for some time, conducting a multi-year analysis of its financial situation and market conditions before reaching this decision.

The company’s efforts to find a buyer for the plant were unsuccessful, leaving closure as the only viable option. This decision comes amid broader challenges facing American manufacturing, particularly in the Rust Belt region, where many factories have shuttered in recent years as production moves to more cost-effective locations abroad.

Impact

The closure of the Dunlop tire factory is resulting in 1,380 workers losing their jobs. The sudden nature of the announcement in early November caught local officials off guard, leaving them scrambling to address the impending economic fallout.

“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.” Erie County Executive Mark Poloncarz said earlier this month.

Poloncarz expressed surprise at the lack of communication from Sumitomo regarding the closure. The company reportedly did not reach out to local or state officials for additional assistance, despite having received support and tax incentives in the past. This lack of dialogue has left many questioning whether more could have been done to prevent the closure.

Transition and Future Outlook

While tire production at the Tonawanda plant has already ceased, other operations will gradually end over the next year or two. During this period, production will transition to other global locations within Sumitomo’s network. The company is working with the United Steelworkers Union to negotiate severance packages for the affected employees.

As the dust settles on this closure, questions remain about the future of American manufacturing and the ability of domestic plants to compete in an increasingly globalized market.

The story of the Dunlop tire factory in Tonawanda serves as a sobering reminder of the ever-evolving nature of global manufacturing and the need for communities to adapt to changing economic realities.