Update: The Yokohama Tire Corporation plant in Salem — one of the city’s largest employers for decades — is scheduled to close March 18th, after a tentative agreement was reached with the union representing workers.
The closure comes months after the company previously announced plans to lay off about 400 employees and said it was considering shutting down the facility in September. That timeline was accelerated following a Friday morning agreement with the union. The union declined to comment on details of the deal but posted on Facebook that employees will be paid through March 31.
Workers must stay employed through the closure date to qualify for benefits. Employees with questions regarding early departure should contact the Union Hall.
In a statement provided to 10 News, Yokohama said, “A tentative agreement has been reached with the union, and we are still continuing to work with them on the final details. We will have more information when it becomes available.”
Tracey Meador, who worked at the Salem plant for more than 30 years, said the signs of a potential closure had been evident for some time.
“We were producing 20,000 to 21,000 tires a day. When I left, they were down to 7,500,” Meador said. “When you see a decline like that, you know it isn’t good.”
The company previously cited several reasons for cutting production, including phasing out certain products and declining demand.
Meador said he has stayed in close contact with former co-workers and described growing concern among employees as the closure approaches.
“You can tell a lot of them are really concerned,” he said. “Everybody up there should’ve been worried about it and preparing because you could see it coming.”
A job fair for affected workers is scheduled for March 5. Salem Economic Development Director Tommy Miller said the city will work with local partners to help displaced employees find new jobs.
“The City of Salem is actively engaged as a partner with Yokohama, along with regional, state, and federal workforce partners, to support employees directly impacted by the planned closure of Yokohama’s Salem facility,” Miller said in a statement to 10 News.
The Salem closure marks the third major plant in the region to announce job cuts in the past year, following workforce reductions at the Goodyear Tire & Rubber Company plant in Danville and the Volvo Group plant in Dublin.
Original: Yokohama Tires in Salem will permanently close March 18 after a tentative agreement with the United Steelworkers union on Feb. 20.
All employees will be paid through March 31. Workers must stay employed through the closure date to qualify for benefits. Employees with questions regarding early departure should contact the Union Hall.
As we’ve previously reported, back in January, nearly 400 workers faced layoffs amid declining demand and changing market needs. The permanent closure comes earlier than the previously considered September 2026.
Salem City Manager Chris Dorsey said previously that the city is coordinating with partners to help affected families find new jobs.
We will continue to update this article as closure details are finalized.