The New York factory where Dunlop racing tires, streetbike tires, and other types of tires have been made for the U.S. market is closing, and over 1,500 people will be laid off. The plant also makes car tires, large truck tires, and medium truck tires.
The spec racing tires used in MotoAmerica are made at the plant, which is located near Buffalo, New York, as are OEM fitment tires for Harley-Davidson streetbikes, under contract.
The company has factories making racing tires in other parts of the world, including in Japan, and has built and stockpiled U.S.-made tires for 2025 MotoAmerica and club racing in the U.S.
A press release issued by Dunlop’s parent company, Sumitomo Rubber, follows:
SUMITOMO RUBBER USA ANNOUNCES PLANNED CLOSURE OF TONAWANDA TIRE MANUFACTURING FACILITY
Tonawanda, NY, (November 7, 2024) – Sumitomo Rubber USA, LLC (SRUSA), a Tonawanda, New York-based manufacturer of automotive tires for passenger cars, trucks, buses and motorcycles, today announced plans to close its manufacturing facility in Tonawanda, NY.
The closure follows an extended examination of the viability of the facility, following thorough analysis of various business complexities, including mounting material and logistics costs, dated infrastructure, intermittent performance, and changing market conditions. The evaluation was undertaken as part of a broader strategy to ensure the long-term sustainability of the Sumitomo Rubber Group in the competitive international tire market.
While the company did implement cost-control measures, efficiency enhancements, capital investments, and other improvements over the last several years, these changes have not offset mounting financial losses at the facility.
Approximately 1,550 hourly (union) and salaried (non-union) employees will be impacted by the announcement and have been formally notified of the decision. The United Steelworkers Union Local 135 has also been updated and the company is working with union representatives on effects bargaining and equitable severance packages. The company intends to actively collaborate with union representation and former salaried employees on various job placement support services to help ease workforce transition.
SRUSA is in the process of communicating directly with customers and suppliers to address any potential concerns related to existing orders, delivery schedules, and ongoing contractual obligations. SRUSA also intends to conduct research, development, and testing activities at a yet to-be determined U.S. location. All tire production at the Tonawanda facility will cease, effective immediately, with related wind down activities expected to conclude over the next 12-24 months.
Sumitomo Rubber Industries, Ltd. (SRI) and Sumitomo Rubber North America, Inc. (SRNA) will continue to service existing customers, without interruption, by utilizing a larger percentage of SRI’s available global production capacity.
SRUSA remains committed to supporting its former employees through this challenging time, and remains grateful for all associates’ hard work, dedication, and contributions to the company and facility over its many years in business.
Further information on the plant closure is available on the company’s closure announcement web page at https://srusa-tonawanda-update.com.
Read a local news report here:
https://www.wivb.com/news/local-news/erie-county/tonawanda/sumitomo-rubber-announces-plant-closure/
Watch a news report below:
More, from a letter sent by Sumitomo to vendors:
Via Email through SAP
Re: Notice of Plant Closing
Dear Valued Supplier:
It is with a mixture of gratitude and regret that we write to inform you of a significant decision that will impact our ongoing relationship. After careful consideration and evaluation, Sumitomo Rubber USA, LLC (SRUSA) has made the difficult decision to close its manufacturing facility in Tonawanda, New York effective immediately.
This decision comes after a thorough analysis of various factors, including the company’s operational capacity and market conditions. This decision was not made lightly, and we want to assure you that it is part of a broader strategy for our parent company in North America.
We understand this development will undoubtedly raise concerns on the part of our valued suppliers. All in-transit goods or products will be accepted as ordered, however, no deliveries will be accepted at the factory on Monday, November 11, 2024 or Tuesday, November 12, 2024. Deliveries may resume on Wednesday, November 13, 2024. Please cease work on all in-process orders until you communicate with your SRUSA purchasing agent.
This closing is not an insolvency or bankruptcy. All payments will be processed in the normal course of business.
We will be working with our suppliers to manage the end of our agreements in the coming months. You may contact a member of our purchasing team to discuss how our business relationship will be impacted. SRUSA is finalizing plans to transition production across the company’s existing global footprint, and we appreciate your ongoing support as we navigate the closure process of the Tonawanda factory. We will communicate any specific changes or updates as they develop to ensure a smooth transition.
Thank you for your understanding and ongoing collaboration.
Sincerely,
Sumitomo Rubber USA, LLC.