TOWN OF TONAWANDA, N.Y. (WKBW) — Sumitomo Rubber announced Thursday it is closing its Town of Tonawanda tire manufacturing facility.
As of noon Thursday, the company had a barricade and security guards in tactical gear blocking an entrance.
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.
"I'M THOROUGHLY DISGUSTED"
Watch: Workers react after suddenly losing their jobs
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.
"IT'S CATASTROPHIC"
Watch: Sen. Tim Kennedy reacts to closure of Sumitomo
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."
Erie County Executive Mark Poloncarz also 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 in will work with you in earnest to secure new employment here in the community you call home.”
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.
