Continental plans to close tire plant in Germany

Continental plans to close its tire plant in Aachen by the end of 2021. According to the German trade union IG BCE, Conti's decision will affect 1,800 jobs. However, as noted, the final decision on the issue has not yet been made.

Continental AG announced in early September amid significant losses that it will tighten its current austerity measures and restructure its production facilities. However, Conti's tire division is still considered relatively profitable.

IG BCE has criticized the company's plans. "These measures are not justified by the transformation of the auto industry or the coronavirus crisis," said Francesco Grioli, a member of the union's executive committee. "The announcement of further job cuts is a short-sighted reaction to economic problems ... Conti's management must finally come up with a business strategy that is forward-looking. We will not let the traditional company fall apart," added Christiane Benner, vice chairman of Labor IG Metall and Deputy Chairman of the Supervisory Board of Continental.

The tire maker has yet to comment publicly.

The plant in Aachen, a city in western Germany with a population of about 250,000, was opened in 1931 by the Belgian tire manufacturer Société du Pneu Englebert, which became Uniroyal-Englebert in the late 1950s. Continental acquired the company in 1979.

The plant's capacity is 8 million tires per year; among the manufactured products - puncture-free tires Conti "SSR".

"In a crisis, the board of directors is resorting to management methods that have long been considered a thing of the past," commented Udo Bohnhof, chairman of the plant's works council.

"For many years, our colleagues have worked 40 hours a week without compensation, and the profits from the Aachen plant have helped finance the expansion of the tire division around the world. And is that thanks now?" - added the deputy chairman of the works council Bruno Hickert (Bruno Hickert).