Aila Boyd
aboyd@mainstreetnewspapers.com
Yokohama Tire Manufacturing Virginia LLC and United Steelworkers Local 1023 have reached a tentative agreement that will permanently close the Salem plant March 18, according to a statement from the union.
USW Local 1023 announced that the agreement was reached in the early hours of Feb. 20. Under the terms of the agreement, the company has committed to continue paying all employees through March 31.
To qualify for the negotiated effects bargaining package, employees must work through the plant’s closure date of March 18. Any exceptions to the departure date must receive prior approval from the company’s human resources department. Employees with questions about early departure are advised to contact the union hall.
Additional details about the agreement are expected to be released next week.
The announcement confirms the closure timeline first outlined in a Jan. 16 federal WARN notice issued by Yokohama, which cited declining demand for small-diameter tire products, aging equipment and rising maintenance costs at the Salem facility.
Tommy Miller, Salem’s economic development director, said the city is continuing to coordinate with multiple partners to support displaced workers.
“The City of Salem is actively engaged as a partner with Yokohohama, along with regional, state and federal workforce partners, to support employees directly impacted by the planned closure of Yokohama’s Salem facility,” Miller said.
Miller said the city is also beginning to look ahead to the future of the 62-acre site on Indiana Street.
“With respect to the future of the property, Salem’s Office of Economic Development is evaluating a range of opportunities and will work closely with Yokohama to pursue a coordinated, strategic approach to marketing the site,” he said.
The Salem plant, which began operations in 1968 and was acquired by Yokohama in 1989, employed more than 1,000 workers at its peak in the mid-1990s and produced its 100 millionth tire in 2023. The closure will end nearly six decades of tire manufacturing in the city.
