Yokohama Tire To Reduce Output at Virginia Manufacturing Facility

Yokohama Tire announced that the company plans to significantly reduce tire production at its manufacturing plant in Salem, Virginia. The plant has been in operation since the 1960s and has produced tires for Yokohama since the company’s acquisition of Mohawk Rubber Company in 1989, company officials stated in a press release.

The curtailment in tire production will be implemented beginning in March of this year and is in response to the expiration of certain product lifecycles and reduced demand for other products manufactured at the Salem facility, noted the release. The company is not expecting any supply disruptions as a result of the reduced production output in Salem.

The reduction in tire production will result in the layoff of approximately 392 hourly and salaried employees at the Salem facility, the company said. Salaried employees affected by the decision will receive layoff benefits under existing company policies. Affected hourly employees will receive layoff benefits in accordance with the terms of the collective bargaining agreement between Yokohama and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union (USW) and its Union No. 1023.

Yokohama says that in light of rapidly changing customer requirements and dynamic market conditions, the Salem facility is not well equipped to manufacture its required product mix or achieve the company’s manufacturing objectives in the future. As a consequence, Yokohama is currently evaluating a permanent closure of the facility. Plant employees have been notified that all tire production could cease in July 2026, followed by a full plant closure on September 17, 2026, which coincides with the expiration of the current 2022-26 collective bargaining agreement.

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, according to officials. Additionally, all notices to government stakeholders and affected employees required under the WARN Act, have been issued.