Conway-based manufacturer Tokusen USA set to close, expected 250 job loss
CONWAY, Ark. – A Conway manufacturer with approximately 250 workers has announced it is shutting down.
Tokusen USA advised the Arkansas Division of Workforce Services that it would be closing in mid-to-late March. The company produced steel cord for tires. The company cited aluminum and steel tariffs coupled with “workforce instability and inflationary conditions” as the factors leading to the shut-down decision.
The company outlined the business environment that led to its closure decision.
“North American steel tire cord production has been troubled for many years,” the company said in a news release. “With this plant closing, there are 2 independent suppliers remaining in the U.S.”
Officials said that in the 1990s, the U.S. had seven independent steel cord producers.
Company officials pointed out that lower-cost products from Vietnam, Thailand, and China compete with North American manufacturers.
The 25% tariff on the imported steel used to make the cords was put in place in March 2018 by President Donald Trump. In citing the tariff, company officials also noted the forthcoming closing of a New York tire plant and the 2023 closing of an Oklahoma tire plant as additional factors in the decision.
Conway Mayor Bart Castleberry said the city would do what it could to help those impacted by the closure.
“This is a tough day for the employees at Tokusen,” Castleberry said. “The loss of Tokusen and 250 jobs impacts not just those directly affected but our entire community. We stand committed to supporting these workers and their families during this transition, and we will work to attract new opportunities and investment to our city. We appreciate Tokusen’s 35-year history of providing employment in our city.”
Tokusen officials said the company would offer employees severance and healthcare assistance packages and work to aid reemployment efforts.
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