Yokohama may close Virginia plant
Yokohama announced that it will substantially reduce production volumes at its passenger and light truck tire plant in Salem, Virginia, USA, and 392 employees will be laid off. Additionally, the possibility of a complete shutdown of production in July of this year and the closure of the plant on September 17, when the current collective agreement expires, is being considered.
According to a statement from Yokohama, production cuts will begin in March and will be due to the completion of the life cycle of certain products and a decrease in demand for other tires produced in Salem.
"In the face of changing customer requirements and market conditions, the Salem plant is unable to produce the necessary range of products or meet production targets. As a result, Yokohama is considering the possibility of finally closing the plant," the company said.
Yokohama emphasizes that it does not expect any disruptions to product supplies due to the reduction in production in Salem, and employees who are subject to reduction will receive compensation in accordance with established rules.
The Salem plant has been operating since the 1960s and has been part of Yokohama since 1989, when it acquired Mohawk Rubber Company. According to Modern Tire Dealer, the plant is capable of producing 25.7 thousand passenger and 1.1 thousand truck tires per day. In 2023, the plant produced its 100 millionth tire.
Salem Mayor Renee Turk said that "for nearly six decades, the Yokohama plant and the people who work there have played an important role in shaping the city's image." "It seems that almost every family is connected to this plant, and many employees are actively involved in their communities. Unfortunately, industrial enterprises in Virginia and across the country have faced significant challenges in recent years. While this is very sad news, it is not unexpected, as companies like Yokohama have had to adapt to changing conditions," she added.
In recent years, several tire plants have been shut down in the United States. For example, Bridgestone prematurely closed its truck tire plant in Tennessee, affecting 700 employees, and Yokohama stopped producing agricultural tires in South Carolina. Additionally, Sumitomo sold its 102-year-old plant in New York state.