Yokohama Tire plans 392 layoffs in Virginia

Yokohama Tire plans to “significantly reduce tire production” at its Salem manufacturing facility and will lay off 392 hourly and salaried employees of the plant, according to a company announcement Friday.

Salem Yokohama employees have been notified, Yokohama Tire stated, that all tire production could cease in July, followed by a full plant closure Sept. 17. That date coincides with the expiration of the collective bargaining agreement between Yokohama Tire Manufacturing Virginia and United Steelworkers Local 1023.

The Salem plant currently employs 571 workers, according to a Yokohama Tire spokesperson.

“I am truly saddened to learn that the Yokohama plant will be laying off so many employees,” Salem City Manager Chris Dorsey said in a statement. “For generations, Yokohama has been part of the fabric of Salem, and so many of the people who worked there have also given back to our city. This won’t just be a financial impact on the city, but it is also a personal impact on the community and families who depend on these jobs.”

Mohawk Rubber Co. opened the Salem plant in 1968. Yokohama Tire acquired Mohawk in 1989. The facility expanded production in 1994 and employed 1,050 at its peak in 1996, according to Salem city government.

In 2023, company executives and Salem officials celebrated the 100 millionth Yokohama tire rolled off the line at the Salem plant.

The reduction in tire production in Salem, which will begin in March, is in response “to the expiration of certain product life cycles” and reduced demand for products manufactured there, according to Yokohama Tire. The company does not expect supply disruptions.

The Salem facility, according to Yokohama Tire, “is not well equipped to manufacture Yokohama’s required product mix or achieve the company’s manufacturing objectives in the future.”

Salaried employees who lose their jobs will receive layoff benefits under existing company policies, while affected hourly employees will receive layoff benefits in accordance with the collective bargaining agreement between Yokohama Tire and United Steelworkers Union No. 1023.

A representative of the union declined to comment Friday.