Contitech plans to close several plants

Hanover (dpa) - In view of the crisis in the automotive industry, Continental is planning plant closures at its plastics technology division Contitech in four German states. A total of around 580 jobs will be affected, 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 sites of Frohburg and Geithain (Saxony).

In addition, the activities of the Original Equipment Solutions (OESL) business unit, which will be independent in the future, are to be scaled back at the Hamburg site. As part of the planned spin-off 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 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

Continental's Rubber General Works Council and the chemical union IGBCE strongly criticized the company's plans. "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 had repeatedly had to make concessions. "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 grew 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 sector. 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 materials expertise for products and systems made of rubber, plastic, metal and fabric.