The Japanese company that owns tire maker Dunlop shuttered a century-old New York factory — and fired 1,500 workers — as it moved manufacturing overseas.
Sumitomo Corp, the Tokyo-based conglomerate that boasts a market capitalization of more than $25 billion, closed down the Dunlop plant located in Tonawanda, near Buffalo, on Nov. 7.
The closure is the latest blow to the Western New York area, which like much of the Rust Belt has seen its manufacturing sector decimated by companies shifting production overseas in recent decades.
The company said that cost controls and investments in the aging facility were not enough to overcome mounting financial losses, according to Cycle News.
“The plant closure is primarily due to overall facility performance within the increasingly competitive international tire market,” Sumitomo said in a statement to the publication.
“This difficult decision follows a multi-year analysis of the company’s financial situation and general market conditions.”
The company said that it sought to find a buyer for the facility, which first opened its doors in 1923, but made the decision to shut down the plant when there were no takers.
Local lawmakers blasted the company, which is said to have spent $140 million in modernizing the plant in recent years.
“It appears this decision was made by the Japanese owner’s board without any discussion with local and state officials about the possibility of closure,” Erie County Executive Mark Poloncarz told Cycle News.
“At no point did Sumitomo ask for any additional assistance to remain in operation, despite the fact we have always supported their efforts to succeed here in Erie County with tax incentives and assistance through the Erie County Industrial Development Agency.”
Rep. Nick Langworthy (R-NY), who represents New York’s 23rd district which encompasses parts of the Buffalo metro area as well as the southern half of western New York State, said he was “gravely disappointed” by the news.
“I mean, it comes as a shock,” the lawmaker told The Post.
“This is gonna really sting here for our regional economy.”
The Post has sought comment from Sumitomo and Poloncarz.
Dunlop tires are made for passenger cars, trucks, buses and motorcycles. The brand also has sporting goods such as tennis rackets and golf equipment.
The tire brand had been owned by two different companies based on geographic regions. In North America, Europe and Japan, Dunlop tires were manufactured and sold by Ohio-based Goodyear Tire and Rubber Company, which acquired the rights as part of a joint venture with Sumitomo.
In 2015, Sumitomo took full control of Dunlop after the parent company ended its joint venture with Goodyear.
[Notigroup Newsroom in collaboration with other media outlets, with information from the following sources]
