TOWN OF TONAWANDA, N.Y. (WKBW) — Erie County Executive Mark Poloncarz and Congressman Nick Langworthy said they are shocked over the sudden closure of the Sumitomo Rubber plant, which will result in the loss of 1,550 jobs.
"I’m gravely disappointed in this news. I mean, it comes as a shock," Langworthy said.
Sumitomo said the closure comes after an extended examination of the facility's viability. The evaluation found mounting material and logistics costs, dated infrastructure, intermittent financial performance and changing market conditions. You can watch our previous report below and read more here.
Despite the lack of notice to employees, both leaders said they are doing everything they can to keep the facility open and protect the workforce.
"I’m mad," Poloncarz said.
Poloncarz and Langworthy said they are working to find answers as to why the closure occurred with such little warning.
"I really gonna still look for some answers here as to why," Langworthy said.
"I immediately called the governor. She had not heard of it at that point, no one had reached out to New York State. We called Schumer's office. No one had reached out to them. And now we're starting to scramble to see what we can do," Poloncarz said.
The closure of the Sumitomo plant is also raising concerns about significant economic losses. Town Supervisor Joe Emminger told 7 News that the town and school district stand to lose approximately $370,000 in tax revenue.
"This is gonna really sting here for our regional economy," Langworthy said.
Poloncarz brought attention to tax breaks provided to the Japan-based company, noting that the Erie County Industrial Development Agency (ECIDA) granted Sumitomo $3 million in tax incentives between 2017 and 2021 while the company invested nearly $140 million.
"When it comes to the IDA benefits that were provided, we entered into an agreement with regard to a recapture agreement. If they shut down and do not meet the standard with the number of jobs they said they were going to create, they have to pay it back," Poloncarz explained.
But beyond the economic concerns, Poloncarz is also raising alarms about a potential violation of the federal WARN Act. The law requires employers to provide a 90-day notice of mass layoffs or offer employees 60 days' pay.
"They didn’t even have the courtesy of issuing a WARN Act notice, but nevertheless, telling their employees before they put their press release out," Poloncarz said.
Sumitomo, in a statement, said that the company is meeting its obligations under the WARN Act. However, the company’s own statement acknowledges that employees were only notified via mail on Thursday—just four days before hourly employees are set to be terminated on Monday. Salaried employees will be laid off either next Friday or by February 15.
"I think they dropped the ball on the WARN Act," Poloncarz said.
Sumitomo said it is contacting customers and suppliers directly to manage any concerns regarding existing orders, delivery schedules, and ongoing contractual obligations.
