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Continental prepares to reduce production at Kentucky plant by 22%

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In late August, Continental Tire North America, Inc. (CTNA) announced it was planning to decrease production at its Mayfield, Ky., tire plant. Now it's official.

The company has advised "the appropriate union and government officials" of its decision to reduce tire production to 10,900 tires per day -- a decrease of 22% -- and remove idle equipment.

Approximately 200 hourly job losses will result from the reduction, which will go into effect during the first two weeks of December. The plant employs 1,300 workers.

"Our tire operations have been under extreme competitive pressure for the past several years due to, among other things, escalating costs, particularly in the areas of social benefits and health insurance," says the company. "The Mayfield plant... is considered CTNA’s highest cost producer in North America."

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