Yokohama Tire announced the closure of its plant in Salem, Virginia, with operations scheduled to end March 18. The company said the decision follows earlier plans to reduce production at the facility.
Yokohama previously informed employees that March output would decline and 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 parties agreed to accelerate the closure.
Background of Yokohama Salem Plant Closure
The Yokohama Tire Manufacturing Virginia (YTMV) plant has operated since the 1960s. The facility began producing tires for Yokohama after the company acquired Mohawk Rubber Company in 1989.
Yokohama said the decision reflects the expiration of certain product lifecycles and reduced demand for other products manufactured at the Salem facility.
Employee Impact and Layoff Benefits
Yokohama said the Salem plant closure will affect about 570 employees. Non-bargaining unit employees will receive layoff benefits under existing company policies. Bargaining unit employees represented by the USW will receive layoff benefits according to the effects bargaining agreement between Yokohama and the union…