Continental, a German automotive parts manufacturing company, plans to restructure its operations by making its ContiTech rubber and plastics division an independent entity.
This move is part of a broader strategy to refocus the company as a dedicated tyre manufacturer following the proposed separation of its automotive segment.
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Continental said its executive board is currently in the preparatory phase, evaluating potential transaction forms for ContiTech’s independence and establishing a timeline for the process.
A sale of ContiTech is considered the most probable outcome, expected to occur after the spin-off of the Automotive group sector and the sale of the Original Equipment Solutions (OESL) business area.
If approved, ContiTech could gain its independence by 2026, the company said.
ContiTech is a specialist in material solutions for industrial sectors such as off-highway mobility, mining, construction, home and energy management, and automotive.
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By GlobalDataThe company and generated €6.4bn ($7bn) in sales in 2024 and it currently employs approximately 39,000 people.
A carve-out of Continental’s automotive rubber products division, OESL, is already underway.
The OESL unit, employing around 16,000 people in 16 countries, is seeking potential buyers and partners.
The restructuring initiative is part of Continental’s plan to establish its three group sectors—Tires, ContiTech, and Automotive—as standalone companies.
Following these changes, Continental AG will operate exclusively as a global tyre company.
Continental CEO Nikolai Setzer said: “Over the past 30 years in particular, Continental has used targeted acquisitions and organic growth to build up three strong group sectors in their respective industries. These are now ready for independence.
“Today’s highly dynamic markets also call for focused, agile and decisive action. Now is therefore the right time to initiate the most far-reaching realignment in the company’s history. We are creating three strong, independent champions that will achieve their full growth and value creation potential as independent companies.”
The company’s tyre business generated €13.9bn in revenue in 2024 and employs more than 57,000 people worldwide.
As a result of the changes, the composition of Continental’s executive board will also be adjusted.
Effective 1 July 2025, Ulrike Hintze will be appointed as director of labour relations and executive board member for human resource (HR) at Continental.
In addition to her new responsibilities, Hintze will continue to lead the HR function within the Tires group sector.
She succeeds Dr Ariane Reinhart, who will step down from her role as executive board member for HR and sustainability and director of labour relations on 30 June 2025.
Responsibility for sustainability will be taken over by Setzer, who will now oversee this area alongside his current roles in IT and Communications.
