Continental’s tyre plant in Aachen, Germany is set to close by the end of next year, resulting in the loss of around 1,800 jobs.
The decision was made by Continental following a meeting of its supervisory board in Hanover earlier this week.
The tyre maker cites high production costs – about 60 per cent higher than its other European plants – as the reason behind the closure.
In addition to the plant in Aachen, Continental also plans to close its automotive electronics plant in Karben near Frankfurt by the end of 2024. About 900 jobs will be affected by the decision.
The company’s Regensburg site is also set to be rebuilt by 2024, affecting around 2,100 jobs.
Continental says around 30,000 jobs will be affected worldwide due to its ongoing structural program, about 13,000 of which are in Germany. This does not however, mean all employees will be laid-off, it added.
The closures are part of Continental’s cost-cutting plans, which aims to save the firm €1bn by 2023.