TOWN OF TONAWNADA, N.Y. (WKBW) — Sumitomo Rubber announced Thursday it is closing its Town of Tonawanda tire manufacturing facility.
What you need to know:
- About 1,550 union and non-union workers will lose their jobs
- Tire production will cease, effective immediately
- Wind down activities will conclude over the next 12-24 months
Sumitomo says 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.
The company claims it implemented cost-control measures, efficiency enhancements, capital investments and other improvements over the last several years. But Sumitomo claims these changes did not offset the mounting financial losses at the facility.
The 1,550 employees who have been impacted by this decision have been notified, according to Sumitomo. The company says it's working with the United Steelworkers Union Local 135 on equitable severance packages. Sumitomo says it's also working with union representation and former salaried employees on job placement support services.
Town of Tonawanda Supervisor Joseph Emminger released 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."
Customers and suppliers are being contacted directly to address any concerns with existing orders, delivery schedules and ongoing contractual obligations, according to Sumitomo.
The company says it will continue to offer service without interruption by using a larger percentage of its global production capacity.
You can learn more about the plant closure here.
In 2020, the 7 News I-Team investigated claims of unsafe working conditions at Sumitomo's Tonawanda plant.
