Bridgestone may close its factory in Dayton

Bridgestone Firestone’s Dayton Tire plant, hit hard by overseas competition and shrinking demand, has been racking up millions of dollars in losses and may have to be closed, company officials said Friday.

Steve Brooks, vice president of manufacturing operations for the Nashville, Tenn.-based tire company, said no final decision has been made, but union officials have been notified there is a potential for closure of the 2.6 million square-foot plant in southwest Oklahoma City, which employs 1,423 people and 158 contract employees and makes about 26,200 tires per day.

He said the factory lost $40 million last year and $17 million in the first quarter of this year alone. Projections indicate the losses for this year could be as high as $60 million. The plant has an annual payroll of about $128 million. The average worker makes $900 per week, plus $800 in weekly benefits.

“The bottom line is this plant is losing enormous amounts of money and for the overall good of our business we had to make a decision to move forward,” Brooks said. “The market that this facility operates in has been shrinking.

“In addition, we’ve got fierce competition in that marketplace. … Even considering substantial capital investment, we didn’t feel we had a good business case to make this plant globally competitive.”

He said the plant has been buffeted by rising production costs and strong competition from low-end imported tires.

Brooks said the company is talking to union representatives, but isn’t looking for any particular concessions. No plant closure is expected before Dec. 31. The company is required under union agreement to negotiate with workers for a six-month period before closing the facility.

The company’s contract with the United Steel Workers union expires in July, but Brooks said the announcement wasn’t a negotiating tactic.

David Nichols, a divisional steward for the United Steel Workers union local in Oklahoma City, declined comment.

“It just happened this morning,” Nichols said. “It’s new to everyone. That’s pretty much where we’re at right now. We haven’t thought that far ahead yet.”

Nichols said the local has about 1,000 members, all employed at the Dayton Tire plant.

It’s at least the second time the plant has been threatened with a shutdown. In 1987 the plant was saved after union members accepted wage and benefit cutbacks.