Bussiness
Sumitomo Rubber to close Tonawanda plant, lay off more than 1,500 employees
Sumitomo Rubber USA has announced plans to close their manufacturing facility in Tonawanda and lay off 1,550 employees, company officials said Thursday.
According to a press release, the closure follows “an extended examination of the viability of the facility, following thorough analysis of various business complexities, including mounting material and logistics costs, dated infrastructure, intermittent financial performance, and changing market conditions.”
The company says the closure will help to ensure their long-term sustainability and are working with United Steelworkers Union Local 135 on job placement support services and “equitable severance packages.”
“We have been made aware of Sumitomo Rubber USA’s announcement,” Town of Tonawanda Supervisor Joseph Emminger said. “Our first thoughts are with the more than 1,500 workers and their families who are impacted by this sudden plant closure. This is a very difficult time for them as they begin to deal with this unexpected news. They need to know the Town of Tonawanda stands with them. I will have more to say at a later time.”
SRUSA says all tire production in Tonawanda will cease immediately and all related activities will stop over the next 12-24 months.
Erie County Executive Mark Poloncarz called the closure ‘surprising’ in a statement:
“The sudden closing of Sumitomo Rubber’s Tonawanda facility came as a complete surprise. It also appears that workers at the facility, including those in management, were unaware that a closure was imminent, at least until late last night when I also was made aware of the situation. It appears this decision was made by the Japanese owner’s board without any discussion with local and state officials about the possibility of closure. At no point did Sumitomo ask for any additional assistance to remain in operation, despite the fact we have always supported their efforts to succeed here in Erie County with tax incentives and assistance through the Erie County Industrial Development Agency. In fact, as a board member of the Erie County Industrial Development Agency, I supported a $1.8 million combined sales and property tax incentive in 2021 as part of Sumitomo’s then $129 million investment in the facility, as well as in 2017 a $1.2 million sale and property tax incentive package in concert with Sumitomo’s $9.7 million investment then. I have already spoken to Governor Kathy Hochul and other officials about the situation, and we will continue to work with our partners to make every effort to keep the facility open and save jobs, if possible. Finally, to the 1,500 employees affected by this harsh foreign corporate decision, we in Erie County government will do all we can to keep the plant open, and if the closure is indeed permanent, we will work with you in earnest to secure new employment here in the community you call home.”
Rep. Tim Kennedy says this is an ‘outrageous loss’:
“The decision to close this facility is a devastating and outrageous loss to 1,550 hard-working people, to the Town of Tonawanda, and to our region’s entire economy,” said Congressman Kennedy. “After investing over $100 million, which increased production by fifty percent, the company is shutting down its only tire production facility in the U.S. Our community has manufactured tires at this facility for over a hundred years, and we have developed one of the highest-quality workforces to do so. I will continue to fight for the skilled and dedicated individuals in our region, who deserve good-paying jobs right here in Western New York.”
Sen. Sean Ryan also released a statement, calling the news ‘heartbreaking’:
“The loss of Sumitomo in Tonawanda is heartbreaking news for our community. My thoughts are with the workers who dedicated themselves to growing the Sumitomo operation over the last decade. I will work with United Steelworkers Union Local 135 and the NYS Department of Labor to do everything possible to assist these workers. There is no doubt we are facing a difficult moment. The coming tariffs that President-elect Trump plans to implement will devastate New York’s economy, causing prices to spike and inflicting untold damage. Combine that with Speaker Johnson’s pledge to repeal the Chips and Science Act, and I am very concerned about what’s to come and the impact it will have on New York manufacturing and jobs.”
NYS Assemblyman Bill Conrad called the closure ‘devastating’ for Western New York.
“The abrupt closure of Sumitomo Rubber’s Tonawanda plant is devastating to our regional workforce and economy, including of course the Town’s tax base. Western New York cannot absorb the loss of 1,550 employees, many of whom are skilled laborers of the United Steelworkers. “In my discussions thus far with union leadership, it is clear this announcement came without warning. As recently as 2022, we were celebrating Sumitomo’s $129 million investment in the Tonawanda plant, with the company’s promise that it was expanding its production capacity. To hear today that the plant is facing ‘mounting financial losses’ was shocking. “Indeed, the impacts extend beyond the Tonawanda plant. Sumitomo, an international corporation, is shutting down American production, including its facility in Alabama, and shifting all stateside work across its global footprint. “With 1,200 loyal union workers on site in Tonawanda, it is appalling to me that Sumitomo refused to entertain negotiations that could have presented alternatives to an immediate shuttering of this facility just four weeks ahead of the holiday season. “Sumitomo Rubber USA acknowledged in a statement today that it is ‘committed to supporting our employees and exploring opportunities to mitigate the effects of the closure.’ I join my colleagues in government in vowing to hold Sumitomo to this, and to assist our region’s residents and economy however we can in our recovery from this crushing development.”
State Republican Leader Rob Ortt in a statement called the plant’s closure a “gut punch”:
“The decision by Sumitomo to shut down their Tonawanda plant is a gut punch to over 1,000 union workers, nearly 500 white collar employees, and their families, whose dedication and labor built this community. Our leaders must understand that bad policies have direct consequences on American workers, who deserve to be defended, not abandoned. This closure should be a call to action for New York and the federal government to make standing up for American workers a top priority.”
Further information can be found at the company website.
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