A tire manufacturer will lay off 392 employees at its Salem plant as it reduces production there and considers permanently closing the facility.
Yokohama Tire said in a news release Friday that the lowered production will begin in March and “is in response to the expiration of certain product lifecycles and reduced demand for other products manufactured at the Salem facility.”
“In light of rapidly-changing customer requirements and dynamic market conditions, the Salem facility is not well equipped to manufacture Yokohama’s required product mix or achieve the company’s manufacturing objectives in the future,” the company said.
The plant employs about 571 people altogether. The 392 being laid off include salaried and hourly workers.
Plant employees have been told that all tire production could end in July, followed by a plant closure on Sept. 17, Yokohama said.
Yokohama said that possible closure date would coincide with the end of its collective bargaining agreement with the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union and the union’s Local No. 1023.
“Because hourly employees at the Salem plant are represented by the USW, Yokohama is under obligation to consult with representatives of USW Local Union 1023 prior to finalizing any closure decision, and such conversations are underway,” Yokohama Tire said.
Union officials did not immediately respond to a message Friday seeking comment, but the union local posted on its Facebook page that it plans to meet with Yokohama about the announcement.
In a letter from Yokohama that the union local posted online, the company said, “It is possible but unlikely that discussions with the Union could modify or delay the Company’s restructuring plans.”
Yokohama Tire is a North American arm of Tokyo-based The Yokohama Rubber Co. Ltd. The Salem plant has been operating since the 1960s, and Yokohama acquired it when it bought Mohawk Rubber Company in 1989. At its peak in 1996, the Salem plant employed 1,050 people, according to the city.
Salem’s economic development director, Tommy Miller, said in a statement that city officials “are still learning more details and working to better understand the scope and timeline of the company’s decision.”
“Our priority is supporting the employees and families who are impacted. In coordination with regional and state partners, we’re focused on making sure those affected can connect to available resources, workforce services and support programs during this uncertain time,” Miller said.
Salem Mayor Renee Turk said that Yokohama has “played a major role in shaping Salem” for nearly six decades and that “it feels like almost every family has a connection to the plant.”
“Unfortunately, manufacturing facilities across Virginia and the nation have encountered difficult challenges in recent years,” Turk said. “While this news is painful, it’s not entirely unexpected, as companies like Yokohama have had to adapt their operations and staffing due to changing conditions.”
City Manager Chris Dorsey noted that employees and their families “may be facing a lot of uncertainty in the months ahead.”
“This won’t just be a financial impact on the City, but it is also a personal impact on the community and families who depend on these jobs,” Dorsey said in a statement.