Layoffs next month and the possible closure of the Yokohama Tire plant in Salem – which could impact almost 400 jobs – not to mention whole families and businesses that support the plant. Salem City Manager Chris Dorsey says they were caught off guard a bit by today’s announcement. Dorsey says he has already spoken with the Roanoke Regional Partnership about what the future might hold for that 62-acre parcel now owned by Yokohama Tire along Electric Road.
REACTION FROM SALEM OFFICIALS
RENEE TURK – SALEM MAYOR
“For nearly six decades, the Yokohama plant and the people who work there have played a major role in shaping Salem. It feels like almost every family has a connection to the plant, and many employees are involved with their neighborhoods, community organizations and our schools. Unfortunately, manufacturing facilities across Virginia and the nation have encountered difficult challenges in recent years. 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.”
CHRIS DORSEY – CITY MANAGER
“I am truly saddened to learn that the Yokohama plant will be laying off so many employees. My heart goes out to them and their families who may be facing a lot of uncertainty in the months ahead. For generations, Yokohama has been part of the fabric of Salem, and so many of the people who worked there have also given back to our city. 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.”
TOMMY MILLER – ECONOMIC DEVELOPMENT DIRECTOR
“We’re disappointed to learn of today’s announcement from Yokohama regarding layoffs and the potential closure of the Salem facility. We are still learning more details and working to better understand the scope and timeline of the company’s decision. Our priority is supporting the employees and families who are impacted. In coordination with regional and state partners, we’re focused on making sure those affected can connect to available resources, workforce services and support programs during this uncertain time. We value Yokohama’s long-standing presence in Salem and remain committed to open communication with the company.”
YOKOHAMA HISTORY IN SALEM
- Mohawk Rubber Company began construction in 1967
- Operations began in June 1968
- 62-acre site produced car and truck tires
- Expanded several times in the 1970s and again in 1983
- Yokohama Tire acquired plant in 1989
- Expanded production in 1994 employing 1,050 at its peak in 1996
- Produced 100-millionth tire in 2023
(Previously) 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.
The post City of Salem officials react to Yokohama Tire imminent closure announcement at Salem plant, with 392 layoffs announced first appeared on News/Talk 960-AM & FM-107.3 WFIR.
