A century-old tire factory in Tonawanda, New York, is closing its doors, leaving 1,550 workers jobless and the local economy reeling.
At a Glance
- Sumitomo Rubber is shutting down its Dunlop tire plant in Tonawanda, New York
- The closure will result in 1,550 job losses
- Financial losses and international competition cited as reasons for closure
- Local officials and employees were caught off guard by the decision
- The plant’s closure reflects a broader trend of manufacturing jobs moving overseas
Sudden Shutdown Shocks Community
In a devastating blow to the Western New York economy, Sumitomo Rubber has announced the closure of its Dunlop tire manufacturing plant in Tonawanda. The decision, which will eliminate 1,550 jobs, has dismayed the community and raised concerns about the future of manufacturing in the region.
The closure of the plant, which has been in operation since 1923, came as a surprise to both local officials and employees. Erie County Executive Mark Poloncarz expressed his disappointment, revealing that there had been no prior discussion with local or state officials about the possibility of closure.
“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,” Poloncarz said.
Global Competition and Financial Struggles
Sumitomo Rubber cited financial difficulties and intense competition in the international tire market as the primary reasons for shuttering the plant. Despite recent investments totaling $140 million, including $129 million in 2022, the company was unable to turn the facility’s fortunes around.
“The plant closure is primarily due to overall facility performance within the increasingly competitive international tire market,” Sumitomo stated.
The company’s decision to close the plant without seeking additional assistance has drawn criticism from local lawmakers. Poloncarz noted that Erie County had previously supported Sumitomo’s efforts with tax incentives and assistance through the Erie County Industrial Development Agency.
Impact on Workers and Community
The closure of the Dunlop tire factory represents a significant setback for the Tonawanda community and the broader Western New York region. Rep. Nick Langworthy expressed concern about the economic impact, stating, “I mean, it comes as a shock. This is gonna really sting here for our regional economy.”
Sumitomo has stated that it is working with the United Steelworkers Union to develop severance packages for the affected employees. While tire production has already ceased, the company plans to wind down overall operations over the next one to two years.
A Trend in the Rust Belt
The closure of the Dunlop tire plant is part of a larger trend in the Rust Belt, where manufacturing jobs continue to move overseas. This shift has left many communities struggling to adapt and find new economic opportunities.
As Sumitomo transitions production to its existing global facilities, the closure serves as a stark reminder of the challenges faced by long-standing industries in an increasingly globalized market. The loss of 1,550 jobs will undoubtedly have a ripple effect on the local economy, impacting not only the workers and their families but also the businesses that relied on their patronage.
