15 Jan 2025
South American manufacturer reducing working days from seven to five per week
Cuenca, Ecuador – Continental Tire Andina SA is adjusting its working schedule at its manufacturing plant in Cuenca, due to low utilisation rates and slow market demand.
Starting January, the facility is moving from a seven-day work model to a five-day work model, suspending activities on weekends, the Continental AG company said 7 Jan.
According to Continental, the decision was reached through a ‘collective agreement’ and will help address various factors affecting its operations.
With utilisation at 55% of the plant’s installed capacity, Continental said it was “forced to make urgent decisions to face the current situation.
Issues, it said, include “a significant decrease in production volume due to a constant drop in market demand in recent years, especially in 2024.”
According to Continental works council (ERCO), the adjustment in schedules will result in a 30% pay-cut for 750 employees of the facility.
The factory in Cuenca is Ecuador’s only tire manufacturing facility, according to the Global Tire Report 2024, published in ERJ.
Operational since 1955, the plant has capacity to produce 2.2 million units per year of passenger car, light truck and truck & bus tires.
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