Yokohama Tire Plant in Salem, Virginia to Close in March 2026

Nearly 400 workers impacted as tire manufacturer cites declining demand and market shifts

Published on Mar. 1, 2026

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Yokohama Tire Manufacturing in Salem, Virginia will permanently cease operations on March 18, 2026, following a tentative agreement reached with the United Steelworkers (USW) union. The closure will impact nearly 400 workers, though all employees will continue to be paid through March 31, 2026, provided they remain employed until the plant's final shutdown.

Why it matters

The closure reflects broader challenges facing the American manufacturing sector, as companies grapple with declining demand and shifting market dynamics. The economic impact on the Salem region will be significant, underscoring the vulnerability of manufacturing communities to global economic forces.

The details

The agreement secured by USW Local 1023 ensures continued compensation for workers navigating the plant's closure. Employees seeking information regarding potential early departure options have been directed to contact the Union Hall. The decision to close the Salem facility comes earlier than previously anticipated, revising an earlier potential closure date of September 2026.

  • Yokohama Tire initially announced potential layoffs in January 2026.
  • The tentative agreement with the USW union was reached on February 20, 2026.
  • The Salem plant will permanently cease operations on March 18, 2026.
  • All employees will continue to be paid through March 31, 2026.

The players

Yokohama Tire Manufacturing

A tire manufacturer that is closing its plant in Salem, Virginia.

United Steelworkers (USW) union

The union that represents workers at the Yokohama Tire plant and secured a tentative agreement regarding the closure.

USW Local 1023

The local union chapter that negotiated the agreement with Yokohama Tire.

Chris Dorsey

The Salem city manager who has indicated the city is collaborating with partner organizations to provide support and resources to affected families.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

What’s next

The city of Salem is actively collaborating with partner organizations to provide support and resources to affected families in their search for new employment opportunities.

The takeaway

The closure of the Yokohama Tire plant in Salem is a significant event with far-reaching implications, highlighting the challenges facing the American manufacturing sector and the need for communities to support displaced workers and diversify their economic base.