Yokohama Tire to Close Virginia Manufacturing Plant

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Yokohama Tire has announced that it will permanently close its manufacturing plant in Salem, Virginia, on March 18, 2026. The facility, which has operated since the 1960s, will cease production earlier than initially planned due to reduced output and product demand. Approximately 570 employees will be affected, with non-bargaining unit employees receiving layoff benefits under existing company policies and union-represented workers receiving benefits negotiated in the effects bargaining agreement.

Why it matters

The closure of the Salem plant is part of Yokohama's broader strategy to optimize its manufacturing footprint and respond to changing market conditions. The decision will impact the local economy in Salem, Virginia, which has relied on the plant as a major employer for decades.

The details

Yokohama Tire acquired the Salem plant in 1989 when it bought Mohawk Rubber Company. The facility has been in operation since the 1960s. The decision to close the plant earlier than planned follows a reduction in output earlier this year and negotiations with the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union (USW) Local 1023. Both sides agreed to expedite the closure, citing the expiration of certain product lifecycles and reduced demand for other items produced at the Salem plant.

• Yokohama Tire announced the permanent closure of its Salem, Virginia, manufacturing plant on March 16, 2026.
• The Salem plant will cease production on March 18, 2026.

What’s next

Yokohama and the USW Local 1023 union have described the arrangement for employee benefits as fair and equitable, though specific details have not been disclosed.