Bridgestone to close Oklahoma City plant
Bridgestone Firestone has finalized its decision to close the company?s Dayton Tire plant by Dec. 31, company officials said Thursday.
The Nashville, Tenn.-based company announced almost three months ago that the Oklahoma City plant, hit hard by overseas competition and shrinking demand, had been racking up millions of dollars in losses and might have to be closed.
The closing will affect about 1,400 employees.
?This is a very difficult decision for everyone, especially since we?ve had such a great relationship with the Oklahoma City community for nearly 40 years,? said Steve Brooks, vice president of manufacturing operations for Bridgestone Firestone North American Tire.
?But the reality is this plant produces tires in the low-end segment of the market where demand is shrinking and fierce competition from low-cost producing countries is increasing,? he said. ?Even with substantial new investment, global market forces make it virtually impossible to restore the plant to a competitive position and stem the huge losses.?
Brooks said the plant will continue producing tires for several more months, but will begin ramping down production. He said some of the 183 salaried employees at the plant will have opportunities to transfer to other plants.
Brooks said management and union officials will continue discussions on the closing under terms of the contract, which expires July 23. He said decisions will be made on a month-to-month basis after that.
Gov. Brad Henry said the closing, while expected, ?is still a heartbreaking moment? for the company’s employees.
Henry said state leaders had discussed ways to try to keep the plant from closing several months ago, but ?Dayton officials made it clear that market conditions dictated today?s decision and that a state incentive package would not change their mind.?
?As we work to retrain Dayton workers and help them find jobs, we will also be working with the many smaller companies that supported the tire plant to make sure they can weather this setback as well,? Henry said.
Brooks has 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 plant makes 13-, 14- and 15-inch tires for cars and light trucks at a time when 16-inch tires have become a more popular size. The company held sessions to talk to the union about alternatives to closing the plant.