Carlisle Tire to close oldest plant, move capacity to Tennessee

ERJ staff report (TB)

Carlisle, Pennsylvania - Carlisle Tire & Wheel (CTW) will phase out production at its plant in Carlisle over the next 12 to 15 months, according to Fred Sutter, CTW president.

The company, a wholly-owned subsidiary of Carlisle Companies Inc., plans to consolidate production from the Carlisle plant with that from its former Bowdon, Georgia, facility at a 568,000-sq.-ft. plant in Jackson, Tennessee, Mr. Sutter said. Some of CTW's Chinese production also will be transferred to Jackson, he said.

Some 340 workers-20 percent salaried, the rest hourly-are currently employed at the Carlisle plant, down from a peak of between 600 and 800. Mr. Sutter said it has already asked some Carlisle employees to transfer to Jackson, and added that any employee who wants to transfer to that plant will be given a relocation allowance.

ERJ lists the plant as making up to 22 000 industrial and construction tyres each day in radial ad cross-ply constructions. The plant was set up in 1917. It is the second oldest tyre factory in the United States.

In a company press release, Sutter noted that Carlisle Companies “has been deeply entrenched in the community of Carlisle, Pennsylvania, since this company began in 1917, deriving our name from the town. Though one of the CTW facilities will be relocating, we continue to be committed to the Carlisle community and the excellent relationship we have had with them….”

He explained that the Jackson facility “affords CTW an ideal location, more centralised to our markets with excellent expansion opportunities. This strategic move will strengthen CTW's competitive advantage, improve our workflow and help us to maximise the benefit of the Carlisle Operating System, Carlisle's standardised manufacturing structure and system that allows us to improve our overall profitability and increase shareholder value.”

Sutter expects the Jackson facility to go on stream in phases within the next 15 to 18 months, with employment in the mid-400s. The plant will specialise in agricultural and construction tyres, but will also make some high-end commercial outdoor power equipment tyres, he said.

Purchase of the Jackson site from Whirlpool Corp. is still pending, but Mr. Sutter said he did not think there was any chance the deal would not go through. He did not disclose the purchase price.

Meanwhile, CTW will maintain a 260,000-sq.-ft. distribution center in Carlisle, employing 67.

From Tire Business (A Crain publication)