Sumitomo Rubber Industries Ltd. (SRI), parent company of Sumitomo Rubber North America Inc., is ending tire production at its plant in Buffalo, N.Y.
In addition, SRI is dissolving its Sumitomo Rubber USA LLC (SRUSA) subsidiary “after making the necessary preparations,” the company said in a statement issued on Nov. 7.
“The company and its U.S. subsidiaries have cooperated to improve the production structure and operational efficiencies. However, the business environment remains severe due to the deterioration of productivity and profitability at SRUSA and profitability is hard to improve in the long term.
“Against this backdrop, we have extensively deliberated and carefully considered measures on our commitment to the North American market and the restructuring of operations there.
“Based on the assessment that, in the North American market, sale of tires produced at the SRUSA facility could not be profitable, we've decided to discontinue all production activities at SRUSA and dissolve it.”
SRI acquired full ownership of Goodyear Dunlop Tires North America Ltd., which is now known as SRUSA, in October 2015. Goodyear’s Buffalo plant was part of that deal.
“Since then, we have been manufacturing tires for passenger cars, motorcycles, trucks, and buses,” at the facility, according to SRI officials.
“The tire research and development conducted at SRUSA will be transferred to SRI America Inc. and will remain in North America. In addition, the sales structure of Sumitomo Rubber North America Inc., a subsidiary of the company, remains unchanged.”
SRI officials added that the period “up to 2025” will be a phase of “selection and concentration of existing lines of business” under its current mid-term plan. “We continue to focus resources on and use them in growing businesses to strive for the future growth of the group.”
In 2021, SRI said it planned to invest $122 million in the Buffalo plant to increase daily production capacity from 8,250 tires to 14,300 units for passenger cars, light trucks and commercial trucks.
By the end of 2023, SRI had expected to nearly double its capacity to produce passenger and light truck tires, increasing from the current 6,500 tires a day to 12,000 PLT tires a day.
According to MTD research, Buffalo is the smallest of SRI’s production facilities. The company’s other plants are located overseas.
“The company resolved to terminate all production activities at SRUSA and to dissolve SRUSA after making the necessary preparations on Nov. 7, 2024,” SRI officials said in a statement. “We will proceed with necessary procedures for dissolution in accordance with local laws and regulations.”
