Yokohama closes Virginia plant

The Yokohama tire plant in Salem, Virginia, USA will be closed on March 18, several months ahead of schedule. Initially, the company intended to reduce production at the plant starting in March and considered the possibility of its closure in July 2026, but after negotiations with the unions, it was decided to accelerate this process.

The Salem plant was opened in the 1960s and became the property of Yokohama in 1989, when Mohawk Rubber Co. was acquired. According to MTD, the enterprise was capable of producing up to 27,500 passenger and 1,100 light truck tires per day.

It is reported that the decision to close the plant is due to the fact that "outdated equipment and processes make it difficult to fulfill the tasks of increasing production capacity and producing premium-class tires, including large diameters".

Yokohama stated that they do not expect any disruptions in supplies due to the production stoppage, and noted that negotiations have been held with all suppliers and customers, and the 570 employees who will lose their jobs will receive employment assistance in cooperation with the unions.

According to its Yokohama Transformation 2026 (YX2026) strategy, the company is working to increase sales of high-margin products by increasing shipments of ADVAN and Geolandar line tires, as well as winter models and tires with a diameter of 18 inches or more. In addition, "to ensure stable profitability and long-term development, production optimization is being carried out in all Yokohama Rubber Group divisions, and the closure of the Salem plant is in line with this strategy".

Yokohama also emphasizes that the United States remains one of the company's most important markets, and since the establishment of the Yokohama Tire Corp. subsidiary in 1969, the tire manufacturer "continues to expand its production and sales network as part of its active efforts to develop its business in the country".

Photo: MTD