Major Rubber Facility Abruptly Closes, Over 1,500 in New York Losing Jobs

The abrupt closure of a major employer here in New York has dealt a tremendous blow to the state's job market.

The news comes 2 days after Rite Aid announced it was shuttering its distribution center in Liverpool. Hundreds of local workers will be laid off as a result.

Read More: Over 200 to Lose Jobs after Central New York Warehouse Closure

Overall, 2024 has seen a multitude of businesses leaving the state or closing down entirely.

This new incident, however, is one of the worst due to the incredible amount of people suddenly out of a job.

Sumitomo Rubber announced it will be closing its New York-based manufacturing plant in Tonawanda, which is a few miles north of Buffalo. The plant produced automotive tires for a multitude of vehicles, including buses, cars, motorcycles, and trucks.

The plant immediately ceased operations on Thursday, November 7.

"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 company said in a press release.

While all tire production has stopped, the company said "related wind down activities" are ongoing and are expected to conclude "over the next 12-24 months."

According to a New York State Department of Labor WARN Notice, the facility's full closure is set for February 14.

As part of this plant closure, 1,380 employees will be separated from the company. Of these, 1,144 employees will be separated on November 11, 2024; 101 employees on November 15, 2024; and 135 employees on February 14, 2025.

The notice confirms it currently employs 1,524 people.

Why Is Sumitomo Rubber Closing the Warehouse?

The company explained the decision was due to financial and economic issues, which have been exacerbated by an "increasingly competitive international tire market."

The business explained the Tonawanda warehouse had been on their radar for years due to "mounting material and logistics costs, dated infrastructure, intermittent financial performance, and changing market conditions."

After an "extended examination of the viability of the facility," Sumitomo began implementing cost-saving measures. This included new capital investments, enhancements to increase efficiency, and other needed improvements.

Despite "sincere efforts to try and save the plant," the changes there did not "offset mounting financial losses," the company stated.

"As a longstanding corporate citizen in Western New York, the company understands that this closure will impact the local community," it stated.

Local and State Politicians React with Shock, Anger

Erie County Executive Mark Poloncarz was among the first to respond to the abrupt closure of the Sumitomo Rubber plant.

He posted a lengthy statement that said, in part, the closure "came as a complete surprise."

Poloncarz said he spoke with Governor Kathy Hochul and vowed to "make every effort to keep the facility open and save jobs, if possible."

Speaking of the governor, hero office prepared a statement that spoke to the "fear and outrage" that has come from this unexpected economic loss.

"The Governor is committed to using every tool in the State's arsenal to support the more than 1,500 workers and their families impacted by this closure," the statement to WRGZ said.

The New York State Department of Labor was directed to activate its Rapid Response Team to "provide immediate resources" to the affected employees to help them "find new jobs and ways to support their families."

Town of Tonawanda Supervisor Joseph Emminger also released an initial statement, declaring the town "stands" with the laid off workers.

What Now?

There are a lot of questions about the closure, as well as misinformation.

Sumitomo has activated a temporary website to serve as a FAQ page and provide updates as they come available.

Among the most frequent questions was what will happen to the plant site?

Said the company:

At this time, SRUSA’s primary focus is on a well-managed closure process. Future site activity and plans are yet to be determined.

This report will be updated as more information is made available.

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