Yokohama Tire announced that it will permanently close its manufacturing plant in Salem, Virginia, effective March 18. Previously, the company announced a reduction in output for March and notified employees that production could cease in July. After negotiations with the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union and its Local Union No. 1023 (USW), the two sides have agreed to expedite the closure of the facility.
The Yokohama Tire Manufacturing Virginia (YTMV) 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. The decision to close is in response to the expiration of certain product life cycles and reduced demand for other products manufactured at the Salem facility, Yokohama Tire said.
Approximately 570 employees will be affected by the closure. Nonbargaining unit employees will receive layoff benefits under existing company policies, the company said. Bargaining Unit employees represented by the USW will receive layoff benefits in accordance with the terms negotiated in the effects bargaining agreement between Yokohama and the USW.
Representatives from both sides have acknowledged that this is a fair and equitable agreement, the details of which are not being disclosed. The USW has maintained a high level of professionalism throughout this process, and Yokohama said it has been active in the local community in an effort to assist with future job placements for affected employees.
Yokohama is not expecting any supply disruptions as a result of this decision.
