SALEM, Va. – Yokohama Tire announced Friday it will significantly reduce tire production at its Salem manufacturing plant beginning in March, a move that will result in the layoff of approximately 392 employees.
In a press release, the company also stated it is evaluating a permanent closure of the facility, which has been in operation since the 1960s.
The company cited the expiration of certain product lifecycles and reduced demand for other tires made at the Salem plant as the reason for the cutback. A statement noted the facility “is not well equipped to manufacture Yokohama’s required product mix or achieve the company’s manufacturing objectives in the future.”
Plant employees have been notified that all tire production could stop in July 2026, followed by a full plant closure on September 17, 2026. That date coincides with the expiration of the current collective bargaining agreement with the United Steelworkers Union No. 1023.
Yokohama said it is in conversation with union representatives about the potential closure. All required notices to government stakeholders and affected employees under the federal WARN Act have been issued.
Salaried employees affected by the decision will receive layoff benefits under company policies, while hourly employees will receive benefits according to the terms of the union’s collective bargaining agreement.
The company, which acquired the plant from the Mohawk Rubber Company in 1989, said it does not expect any supply disruptions due to the reduced output in Salem.
