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Continental AG closes Mexican plant

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Continental AG has shut down its tire manufacturing facility in El Salto, Mexico.

The German tiremaker made the decision "after repeated efforts to implement international productivity standards proved ineffective due to internal union politics," according to a statement released by Compania Hulera Euzkadi SA de CV, the subsidiary of Continental Tire de Mexico that operated the factory.

The plant employed more than 1,100 workers and produced three million passenger and commercial truck tires a year.

"The closure of the plant does no affect the commercial presence of the Euzkadi brand in Mexico nor the operations of its sister plant in San Luis Potosi," says a Continental spokesman. "Our products will be distributed as usual."

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