Sumitomo Rubber has revealed that it will close its tire manufacturing facility in western New York, leading to the elimination of 1,550 union and salaried jobs.
The company in Japan pointed to ongoing efforts to control expenses and invest in the older facility. Regrettably, these actions fell short in addressing the increasing financial losses.
Sumitomo stated that the shutdown is primarily a result of the plant’s performance in a highly competitive global tire market. This tough choice follows an in-depth review of the company’s finances and current market trends over the past few years.
The company is looking for a buyer to help save the Tonawanda facility near Buffalo. No offers came forward, determining the plant’s outcome.
Sumitomo has made a major investment of $140 million in their facility, including a remarkable $129 million in 2022, as noted by Erie County Executive Mark Poloncarz.
The facility, established in 1923, became fully owned by Sumitomo in 2015. The change took place following the completion of a joint venture between its parent company, Sumitomo Rubber Industries, and Goodyear Dunlop Tires North America, based in Ohio.