Continental sets out strategic targets for ContiTech

Hanover, Germany – ContiTech is to strengthen its strategic focus on industrial-product markets, Hanover-based parent group Continental AG said of its industrial and materials arm.

Continental set out this goal among a series of medium-term strategic targets for group businesses, unveiled during a 4 Dec capital markets day event.

ContiTech, therefore, plans to increase the share of sales accounted for by its industrial business from 55% currently to 60% in the medium-term and to improve its adjusted earnings (EBIT) margin to between 9% and 11%.

Over the longer term, the ambition is to achieve a share of industrial sales of around 80% at ContiTech, the German group added.

ContiTech’s industrial growth areas are primarily in energy, agriculture and construction as well as interior design  – areas requiring its materials expertise, for example, for hoses, belts and surfaces.

The mid-term strategy also envisages that the Original Equipment Solutions (OESL) business area – comprising the automotive business of ContiTech except for surface materials – becoming “organisationally independent”.

OESL is expected to become fully independent in 2025, said Continental, adding that “all strategic options” will be reviewed as part of this process, including entry of a strategic investor, a JV or a sale.