Yokohama announces cutbacks, mulls closure of US tire plant

Santa Ana, California – Yokohama Tire Corp. (YTC) has announced plans to “significantly reduce” production at its passenger car tire plant in Salem, Virginia, as part of a broader review of the site’s future.

To be implemented in March, the cutbacks are in response to “the expiration of certain product lifecycles and reduced demand for other products manufactured at the Salem facility.” 

The move will result in the layoff of 392 hourly and salaried employees at the facility, noted the announcement issued 16 Jan by the tire maker.

Operational since 1960, the unit has an annual manufacturing capacity of about 6.5 million passenger and light truck tires and was acquired from Mohawk Rubber Co. in 1989.

The decision was linked to "rapidly-changing customer requirements and dynamic market conditions," according to the YTC statement.

The Salem facility, it said, was not “well equipped” to manufacture the group’s required product-mix or achieve its manufacturing objectives.

As a result, the tire maker said it was also evaluating a permanent closure of the facility.

Plant employees have been notified that all tire production could cease in July, followed by a full plant closure on 17 Sept.

The potential closure date coincides with the expiration of the current 2022-2026 collective bargaining agreement.

As hourly employees at the Salem plant are represented by the USW, Yokohama is obliged to consult with representatives of the union prior to finalising any closure decision.