Aila Boyd
aboyd@mainstreetnewspapers.com
Yokohama Tire Manufacturing Virginia LLC has notified union leaders of significant upcoming layoffs at its Salem plant and is evaluating a potential permanent closure of the facility later this year, according to a letter dated Jan. 16 that USW Local 1023 has shared publicly.
In a notice issued under the federal Worker Adjustment and Retraining Notification Act, the company said declining demand for small-diameter tire products has led to reduced production and underutilization at the Salem facility, located at 1500 Indiana St.
If implemented, the first phase would involve the layoff of approximately 307 bargaining unit employees beginning March 18 or within 14 days thereafter. The company said those layoffs are expected to last longer than six months and could become permanent.
Yokohama said it is also considering a complete and permanent closure of the plant, which has been operating since 1968. A decision has not been finalized and discussions with the United Steelworkers union are ongoing, according to the letter.
“Unfortunately, manufacturing facilities across Virginia and the nation have encountered difficult challenges in recent years,” Salem Mayor Renee Turk said in a statement. “While this news is painful, it’s not entirely unexpected, as companies like Yokohama have had to adapt their operations and staffing due to changing conditions.”
Yokohama cited aging infrastructure, rising maintenance costs and outdated production processes as factors contributing to the possible closure. The company said modernizing the Salem plant to meet current manufacturing standards would require substantial capital investment.
If a permanent closure is approved, tire production would cease July 16 or within 14 days, resulting in the permanent layoff of an additional 50 bargaining unit employees. A full plant shutdown could follow Sept. 17 or within 14 days, at which point all remaining bargaining unit employees would be permanently laid off.
City Manager Chris Dorsey said the announcement will have far-reaching effects beyond economics.
“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,” Dorsey said. “For generations, Yokohama has been part of the fabric of Salem.”
Economic Development Director Tommy Miller said the city is coordinating with regional and state partners to support affected workers.
“Our priority is supporting the employees and families who are impacted,” Miller said. “We’re focused on making sure those affected can connect to available resources, workforce services and support programs during this uncertain time.”
The Salem plant has deep roots in the community. Construction began in 1967 under the Mohawk Rubber Company, with operations launching in June 1968. The 62-acre facility expanded multiple times in the 1970s and again in the 1980s.
Yokohama Tire acquired the plant in 1989 and expanded production in 1994, employing more than 1,000 workers at its peak in the mid-1990s. The facility produced its 100 millionth tire in 2023.
Yokohama officials said any final decision regarding layoffs or closure will be communicated as more information becomes available and after discussions with the union are complete.
