Bandag Inc. will phase out production at its Chino, Calif., retread plant over the next three to four months.
However, Bandag will continue to operate its distribution center next to the facility.
Bandag officials say 49 employees will be affected by the retread plant's closing.
"The Chino manufacturing decision was a particularly difficult one to make because the employees have a strong tradition of excellence," says Nate Derby, Bandag vice president of manufacturing. "Unfortunately, this decision was driven by factors outside our control, including slowing market demand" and high energy costs.
"Our decision to convert Chino into a distribution center is part of the larger-scale realignment plan that is designed to better focus Bandag resources on marketplace needs."
Some of Chino's retread equipment will be sent to other Bandag facilities.
