Factory in New York producing Dunlop tires closes, resulting in 1,500 job losses as Japanese parent company shifts production abroad.
A Japanese company has closed its century-old factory in New York, resulting in the layoffs of 1,500 workers, as it shifts production to overseas locations.
On November 7, Sumitomo Rubber USA shut down the Dunlop facility in Tonawanda, close to Buffalo.
The shutdown marks another setback for western New York, an area that, similar to many parts of the Rust Belt, has experienced significant decline in its manufacturing industry due to companies relocating production abroad in recent years.
The organization reported that efforts to manage expenses and invest in the old facility fell short in addressing the increasing financial losses, as stated by Cycle News.
“The plant closure is primarily due to overall facility performance within the increasingly competitive international tire market,” Sumitomo said in a statement to the publication.
“This difficult decision follows a multi-year analysis of the company’s financial situation and general market conditions.”
The company announced its efforts to find a buyer for the facility, established in 1923, but ultimately decided to close the plant due to a lack of interest.
Local lawmakers criticized the company for its $140 million investment in plant modernization in recent years.
Dunlop produces tires suitable for a variety of vehicles, including passenger cars, trucks, buses, and motorcycles. The company offers a range of sporting goods, including tennis rackets and golf equipment.
The tire brand was owned by two separate companies depending on the region. Dunlop tires were produced and distributed in North America, Europe, and Japan by Goodyear Tire and Rubber Company, based in Ohio, following their acquisition of rights through a partnership with Sumitomo.