Continental to close plants in Europe and US

Continental has revealed its decade-long restructuring plan that will lead to the closure of plants in Europe and the US that would see around 20,000 jobs affected worldwide.

The announcement comes as Continental attempts to restore profits as vehicle production slows in key markets.
The tyre maker currently employs 244,000 people around the globe. The restructuring will affect 7,000 employees in Germany, where the supplier employs 62,000 people.

Continental listed some of the sites that will be affected in the restructuring:

• In Germany, the production of high-pressure pumps will end in Rodez, Germany, affecting 540 people, and a diesel-injector operation in Limbach-Oberfrohna that employs 1,230 people will be shut down.
• In Pisa, Italy, the production of gasoline injectors will end, affecting 940 jobs.
• In the US, Continental said it plans to close a plant in Newport News, Vance, by 2024. The factory produces gasoline injectors and employs 740 people. A factory in Henderson, North Carolina, will close. The plant makes hydraulic brake systems and employs 650 people.

Continental said its plans to reduce its gross costs by about €500m annually from 2023. The company expects the program to cost around €1.1b over the 10-year plan. Continental added that it isn’t ruling out any additional projects if the current program “does not achieve the desired impact”.

Continental CEO Dr. Elmar Degenhart said the company is “determined” to protect its affected employees and will “offer them prospects for the future”.