Conway, Arkansas – A business in Conway that employs about 250 people has declared its intention to close.
The Arkansas Division of Workforce Services was informed by Tokusen USA that it will be closing in the middle to end of March. The business made steel tire cords. The company attributed the decision to shut down to “workforce instability and inflationary conditions” in addition to steel and aluminum tariffs.
The business described the conditions under which it decided to close.
The business stated in a news release that “production of steel tire cord in North America has been troubled for many years.” “There are two independent suppliers left in the United States as a result of this plant closing.”
According to officials, there were seven separate steel cord manufacturers in the United States in the 1990s.
Officials from the company noted that North American manufacturers face competition from cheaper goods from China, Vietnam, and Thailand.
In March 2018, President Donald Trump imposed a 25% tariff on the imported steel used to produce the cords. In addition to the tariff, business officials cited the impending closure of a tire facility in New York and the 2023 closure of a tire plant in Oklahoma as other considerations.
According to Conway Mayor Bart Castleberry, the city would make every effort to assist people affected by the shutdown.
“Tokusen employees are having a difficult day,” Castleberry stated. “Our entire neighborhood is impacted by the loss of Tokusen and 250 jobs, not just those who are immediately impacted. In addition to working to bring in new investment and possibilities for our community, we are dedicated to helping these individuals and their families through this change. We value Tokusen’s 35-year history of creating jobs in our community.
According to Tokusen officials, the company would help with reemployment attempts and provide healthcare assistance and severance benefits to its workers.
