Sumitomo Rubber Industries announced the closure of its tire manufacturing plant in Tonawanda, New York, ending nearly a century of operations and eliminating 1,550 union and salaried jobs. The company cited financial losses, competitive international market pressures, and unsuccessful cost-control efforts as the primary reasons for the decision.

Attempts to find a buyer for the aging facility, which received a $140 million investment as recently as 2022, were unsuccessful. “This decision follows a multi-year analysis of the company’s financial situation and market conditions,” Sumitomo stated.

Local officials, including Erie County Executive Mark Poloncarz, expressed disappointment, noting the lack of discussions with state and local authorities prior to the decision. The company is collaborating with the United Steelworkers Union to negotiate severance packages, and the phased wind-down of operations is expected to take up to two years.

The Tonawanda plant opened in 1923 and became fully owned by Sumitomo in 2015 following the dissolution of a joint venture with Goodyear Dunlop Tires North America. Tire production will now be distributed across Sumitomo’s global manufacturing network.

Article by MSN.