Continental will close two plants
Continental AG will close two plants due to "a huge slump in original equipment sale and sluggish replacement business," say company officials.
Plants scheduled to close include the firm's commercial tire factory in Hanover, Germany, and its passenger tire plant in Claroix, France.
The Claroix plant is Continental's most expensive European manufacturing facility to operate. Closing it will reduce the company's passenger and light truck production capacity by eight million units. Closing will be completed in early 2010.
The Hanover plant will close at the end of 2009.
In related news, Continental will reduce production at its Puchov, Slovakia, plant by 20%.
"We have studied various options and concluded that the competitiveness of the tire divisions can be maintained only by closing... the plants," say Continental officials.