German automotive supplier Continental has announced the closure of four plants and the downsizing of two others within its ContiTech division.
The move will affect approximately 580 employees, the company said.
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The decision comes in response to “persistent” drop in demand in customer sectors such as the automotive industry and lignite mining.
Last week, Reuters reported that Continental plans to cut over 7,000 jobs as part of a year-long restructuring effort.
The closures will occur at the sites in Bad Blankenburg, Stolzenau, Moers, and the dual location in Frohburg and Geithain.
Additionally, the company will scale back activities at the Hamburg location and relocate a production line from Hanover-Vahrenwald to an automotive site.
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By GlobalDataContiTech, known for its expertise in rubber, plastic, metal, and textile products and systems, has undergone a reorganisation since early 2024 to better focus on industrial business expansion.
The planned closures aim to streamline operations and adjust the product portfolio to evolving market demands.
Continental said it has informed employees at the impacted locations and will soon initiate discussions with local employee representatives.
ContiTech employs about 39,000 staff across 37 countries, with 22 locations and roughly 11,000 employees in Germany alone.
The Bad Blankenburg plant, which produces conveyor belts mainly for South American markets, will close, affecting 185 jobs.
Employing 110 people, the Stolzenau facility will also shut down due to a lack of recovery in the market and a reliance on a limited customer base. It manufactures cargo compartment covers.
In Moers, all 47 jobs will be impacted with the closure of the plant, which has seen a decline in the special conveyor belt business.
The Geithain and Frohburg locations are closing due to a persistent decrease in demand for blow mold tools, impacting 58 jobs.
Furthermore, the Hanover-Vahrenwald plant will transfer production of passenger-car air springs to the Czech Republic by the first half of 2026, affecting 126 jobs.
Finally, in Hamburg, 53 of the 107 jobs at the Original Equipment Solutions (OESL) will be impacted as activities are relocated to Hann.
ContiTech group sector head and Continental executive board member Philip Nelles said: “With these planned measures, we are responding to market changes in individual customer sectors – particularly the severe, persistent declines in demand.
“Developments in the automotive industry and lignite mining in Europe are posing particular challenges for us. The painful steps we are initiating are necessary to reposition the company for sustained economic growth.”
