The Japanese company that owns tire maker Dunlop has closed its 100-year-old New York factory and laid off 1,500 employees as it moves manufacturing overseas.
Sumitomo Corporation, a Tokyo-based conglomerate with a market capitalization of more than $25 billion, closed its Dunlop factory in Tonawanda, near Buffalo, on Nov. 7.
The closure is the latest blow to Western New York, which, like much of the Rust Belt, has seen its manufacturing industry decimated in recent decades as companies moved production overseas.
The company said cost controls and investments in aging facilities were not enough to overcome mounting financial losses. According to Cycle News.
“The plant closure is primarily due to the facility's overall performance in the increasingly competitive international tire market,” Sumitomo said in a statement to the publication.
“This difficult decision is the result of a multi-year analysis of the company's financial position and general market conditions.”
The company said it had been looking for a buyer for the facility, which began operations in 1923, but was unable to find one and decided to close the plant.
Local lawmakers criticized the company for allegedly spending $140 million to modernize the factory in recent years.
Erie County Executive Mark Poloncarz told Cycle News, “This decision appears to have been made by the Japanese owners' board without any consultation with local or state officials regarding the potential closure.” spoke.
“Even though we have always supported their efforts to succeed here in Erie County with tax incentives and support through the Erie County Industrial Development Authority, Sumitomo Corporation is not willing to make any additional efforts to continue operating.” I didn't ask for help.”
Rep. Nick Langworthy (R-N.Y.), whose 23rd District includes parts of the Buffalo metropolitan area and the southern half of Western New York, said he was “deeply disappointed” by the news.
“I mean, this is shocking,” the lawmaker told the Post.
“This is going to be a really big blow to our local economy.”
The Post has reached out to Sumitomo and Poloncarz for comment.
Dunlop tires are manufactured for cars, trucks, buses, and motorcycles. The brand also handles sporting goods such as tennis rackets and golf equipment.
This tire brand was owned by two different companies based on geographic region. In North America, Europe, and Japan, Dunlop tires were manufactured and sold by the Ohio-based Goodyear Tire and Rubber Company, which acquired the rights as part of a joint venture with Sumitomo.
Sumitomo took full control of Dunlop in 2015 after the parent company dissolved its joint venture with Goodyear.
