Sumitomo Rubber announces immediate closure of Tonawanda plant | WBFO

Sumitomo Rubber announced Thursday morning the closure of its Tonawanda plant. The announcement was made via its website. Production at the plant will cease immediately.

Sumitomo Rubber released a lengthy statement attributing the closure to mounting material and logistics costs, dated infrastructure, intermittent financial performance, and changing market conditions.

1,550 union and non-union workers are set to lose their jobs. The United Steelworkers Union Local 135L has also been updated and the company is working with union representatives on severance packages. Plant management could not speak with WBFO at the time, but later union representatives sent a statement that underscored the impact of the decision.

"Our union has partnered with Sumitomo for years, helping to secure investments, as together we’ve navigated the ups and downs of the tire industry. That management went straight to enacting this extreme measure without coming to us is nothing short of a betrayal of its highly-skilled, dedicated workforce.”

The plant has manufactured tires for cars, motorcycles, trucks, and buses under a variety of brand names since 1923, when it was originally opened and operated by Dunlop. It was purchased by the American-wing of Japanese conglomerate Sumitomo in the 1980s.

In a post on the company website, Sumitomo Rubber USA said the decision followed a "extended examination of the viability of the facility" and followed a thorough analysis of everything from material and logistics costs, to financial performance and changing market conditions.

Town of Tonawanda Supervisor Joseph Emminger released a statement on the matter, stating:

“We have been made aware of Sumitomo Rubber USA’s announcement. 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.”

State Senator Sean Ryan, who's 61st State Senate district includes the Town of Tonawanda, also released a statement on the closure:

"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," Ryan said in the written statement. "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.

Sen. Ryan also took aim at President-elect Donald Trump's tariff plans.

"The coming tariffs that President-elect Trump plans to implement will devastate New York’s economy, causing prices to spike and inflicting untold damage," wrote Ryan. "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."

House Speaker Mike Johnson said he'd work to repeal the CHIPS and Science Act in a news conference last week. He later walked back those comments, saying he misheard the question. Instead he claims Republicans will modify the law to take out some regulatory and "Green New Deal" wording.

Other local elected officials reacted to sudden closure of Sumitomo Rubber, including Erie County Executive Mark Poloncarz. He expressed surprise, especially considering the financial support the Erie County Industrial Development Agency had given to the local plant over the years.

"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," said Poloncarz in part through a written statement. "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."

Meanwhile, Assemblymember Bill Conrad, also a former Town of Tonawanda councilman, met with union officials following the sudden announcement. He too said United Steelworkers Local 135L was caught off guard, and told WBFO the company should have been more transparent sooner.

"Completely shocked, you know we just recently in 2022 celebrated a $129 million reinvestment in the plant. And to hear it's facing mounting financial loss was shocking," said Conrad. "Everything I've heard from everyone from management to union members is they had no indication or little indication the plant was going to close."

Sumitomo had contracts to produce tires under a number of brands, and for vehicle manufacturers like Harley-Davidson. Conrad said all indicators pointed toward the plant being successful.

"It doesn't make sense to me. It's made money, the company has a great profit margin. They made a calculated decision in Japan and it's effecting us here."

This is an developing story and will be updated as more information is gathered.