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Business

Continental releases details of Aachen production facility shutdown

Callum Brook-JonesBy Callum Brook-Jones29th April 20212 Mins Read
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Photo: Continental AG

Following a series of meetings, Continental has released the details of a planned shutdown of production at the company’s tire manufacturing plant in Aachen, Germany. As part of the plan, Continental has outlined how the company will continue to be socially responsible for its employees by offering individual training and further education offers at full pay.

Having previously decided to end production in 2021, the Aachen facility will continue tire manufacture with 1,200 employees until it is eventually phased out by the end of 2022. After this, 500 employees will remain at the tire facility through 2023.

Continental states that the discontinuation of production in the German plant is unavoidable due to massive structural over-capacity in the European tire market. Having not seen any growth in the sector for several years, the company does not expect to see market demand in the near future.

The tire manufacturer says that it must therefore adjust tire production capacity in accordance with the declining market trend, in order to secure the future and competitiveness of its remaining tire manufacturing facilities. The tire plant in Aachen is the smallest and most cost-intensive site in Continental’s European production network.

“The discontinuation of tire production in Aachen is painful. We are aware of the consequences of this step for our employees, and we stand by our responsibility,” commented Continental executive board member for human relations Ariane Reinhart.

“We can only overcome the transformation of our industry and its jobs through a practiced and resilient social partnership. The agreement now reached creates clarity and prospects for our employees in Aachen and is an expression of the social partners’ ability to shape the future. Our training initiative is intended to enable the affected employees to make as direct a transition as possible ‘from work to work’.”

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