Plant closures at Contitech - Saxony also affected

Due to the ongoing crisis in the automotive industry, Continental plans to close several plants in its plastics technology division Contitech in four federal states - including Saxony. Of the total of 580 jobs affected, 58 are in the Free State of Saxony, as the company announced. The plants in Frohburg and Geithain near Leipzig manufacture tools for plastics production.

In addition to Saxony, plants in Thuringia, Lower Saxony and North Rhine-Westphalia are also affected. In addition, the activities of the Original Equipment Solutions (OESL) business unit, which will be independent in future, are to be scaled back at the Hamburg site. As part of the planned independence of Continental's Automotive division, a production line is also to be relocated from the Contitech site in Hanover to an automotive site.

Slump in demand in the automotive industry as the main reason

"With the planned measures, we are responding to a changed market situation that is characterized by strong and sustained declines in demand in some customer industries," said Continental Executive Board member Philip Nelles. "In particular, developments in the automotive industry and lignite mining in Europe are presenting us with challenges."

The aim is to make the planned measures as socially responsible as possible and to enable as many employees as possible to transfer to other parts of the company, said Nelles.

Criticism from works council and trade union

There was strong criticism of the company's plans from the Continental Rubber General Works Council and the chemical union IGBCE. "We are deeply shocked and dismayed," said Matthias Tote, Chairman of the Works Council. He called for a financially strong safety net for his colleagues, some of whom worked in structurally weak regions.

According to the company, Contitech employs around 39,000 people in 37 countries and markets worldwide. In Germany, there are around 11,000 employees at over 22 locations. The division focuses on development and material expertise for products and systems made of rubber, plastic, metal and fabric.