13 Mar 2006
Charlotte, North Carolina - Continental Tire North America Inc. will indefinitely suspend tyre production at its Charlotte plant around Sept. 15 if an agreement to cut manufacturing costs is not reached with the United Steelworkers union.
If the suspension is implemented, about 478 hourly and salaried employees at the facility will be laid off, the company said.
The indefinite suspension plan is part of the firm's restructuring program aimed at reducing manufacturing costs and improving the performance of Conti´s North American passenger tyre business, according to Alan Hippe, president and ceo on the Continental Tire North America.
The company said it did not plan to close the plant and will continue rubber mixing, calendering, puncture sealant and warehousing operations to support its other manufacturing facilities.
Conti is in the midst of contract discussions with the USW and has insisted costs must be reduced by at least $32 million yearly at the site.
From Rubber & Plastics News (A Crain publication)
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