7 Nov 2024
New York-based unit employs 1,555 people, making tires for cars, motorbikes, trucks and buses
Tokyo – Sumitomo Rubber Industries Ltd (SRI) is to terminate all production activities at Sumitomo Rubber USA LLC and dissolve the subsidiary, SRI announced 7 Nov.
The Japanese group linked the decision to a deterioration of productivity and profitability of the unit which makes tires for cars, motorbikes, trucks and buses – amid “severe” trading conditions.
The closure decision, it said, was “based on the assessment, that in the North American market, sale of tires produced at the SRUSA facility could not be profitable."
Tire R&D activities carried out at SRUSA will be transferred to SRI America Inc, while the sales structure of Sumitomo Rubber North America remains “unchanged”.
Established in 1920, New York-based SRUSA employs 1,555 people and generated sales of around $456 million in 2023.
More details to follow...
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