Continental has confirmed that, as part of a restructuring of its European operations, it will be closing its tire production plant in Aachen, Germany. The company’s Supervisory Board approved an earlier decision of the Executive Board to discontinue production at the plant.
The move affects about 1,800 of the 2,000 jobs in production, development and administration at the location. The company states that the reason for discontinuing tire production at this site specifically is due to overcapacity, with the plant being consistently underutilized in recent years.
Wolfgang Reitzle, chairman of the Supervisory Board, commented, “The fundamental structural transformation of the automotive industry and the challenges presented by the economic and market environment have never been greater. They call for particular entrepreneurial courage and determination. With the resolutions approved today by the Supervisory Board, the foundation for the necessary transformation of Continental has been laid. We have thus substantially enhanced its competitiveness and increased its future viability.
“We are very aware that the process the automotive industry and we are going through now is indeed painful, and it will continue in the coming years. At the same time, it is opening up new and profitable growth opportunities in a world of mobility that is undergoing fundamental change. Continental is now well positioned to do this. I am firmly convinced that the company will emerge from this unprecedented transformation process all the stronger.”