Tokusen USA to close Conway plant, exit U.S. market

Tire cord manufacturer Tokusen announced Thursday (Jan. 9) it will close its Conway, Ark. facility laying off approximately 250 workers in central Arkansas.

Tokusen USA, the American subsidiary of Japan-based Tokusen Kogyo Ltd., has been in Arkansas since 1989. The company makes metal wire for tires, medical devices, semiconductors and other products.

“As a result of several years of challenging market conditions, Tokusen has made the difficult decision to cease operations. This news comes suddenly to the Tokusen family. Discussions with customers began in late 2024, and the actions moved swiftly,” a statement from the company read.

The company expects to wind down its operations by the end of March.

Tokusen cited lower cost competitors from Vietnam, Thailand and China as one reason for the sector decline. It also said 25% steel tariffs put in place during the Trump administration compounded market conditions. The company also said workforce and inflationary conditions could not be overcome.

According to Tokusen, tire plants owned by other companies in New York and Oklahoma have closed.

Tokusen will continue to produce wire products in Japan, but it said those factories would be unable to backfill the lost sales from American markets.

Employees are being offered severance and healthcare assistance packages.

The company started in 1934 as a manufacturer of metal wire for textile machinery parts. Tokusen USA has grown to manufacture metal wire for automobile tires, engines, electrical appliances, industrial equipment, semiconductors, solar cells, and medical devices.