Plant closures planned at Contitech

In view of the crisis in the automotive industry, Continental is planning plant closures at its plastics technology division Contitech in four federal states. A total of around 580 jobs are affected, as the company announced. The plan is to discontinue production in Bad Blankenburg (Thuringia), Stolzenau (Lower Saxony) and Moers (North Rhine-Westphalia), as well as toolmaking at the twin site in Frohburg and Geithain (Saxony).

In addition, the activities of the future independent Original Equipment Solutions (OESL) business unit at the Hamburg site are to be scaled back. 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.

Reaction to continuing decline in demand

"With the planned measures, we are reacting to a changed market situation that is characterized by a strong and sustained decline 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 present 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 corporation's plans from the Continental Rubber General Works Council and the chemical trade 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.

IGBCE Group representative Michael Linnartz said that Continental had been lurching from one restructuring to the next for years. The workforce has had to make concessions time and again. "And yet every few months the company comes around the corner with new plans for cuts. This is helpless, destructive and demotivating," said Linnartz.

Continental recently made gains despite the crisis

Last November, Continental surprised with a significant increase in profits. Despite a slight decline in sales, the bottom line profit rose to 486 million euros in the third quarter, almost 63 percent higher than a year earlier. The Group was able to make noticeable gains both in the automotive supply sector, which was characterized by weakness in the industry, and in the tire division.

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.