3 Feb 2025
German-based supplier notes “persistent decline in demand” in customer sectors such as automotive, mining
Hanover, Germany – ContiTech has announced a major restructuring programme which involves the closure of four manufacturing sites in Germany and changes across other locations.
The move is in response to “severe, persistent declines in demand” in key market sectors,” Philip Nelles, head of ContiTech, explained in a 31 Jan statement.
Specifically, the Continental executive said, developments in the automotive industry and lignite mining in Europe were posing “particular challenges for us."
As part of the move, ContiTech is discontinuing production at its locations in Bad Blankenburg (Thuringia), Stolzenau (Lower Saxony) and Moers (North Rhine-Westphalia).
In addition, Continental’s industrial and materials arm will halt toolmaking at the dual location in Frohburg and Geithain (Saxony).
The restructuring also involves ‘scaling back’ activities of the future independent business area Original Equipment Solutions (OESL) in Hamburg.
As part of the planned spin-off of Continental’s ‘automotive group sector’, a production line is also to be relocated from the ContiTech site in Hanover-Vahrenwald to an ‘automotive site’.
The restructuring is expected to impact a total of 580 jobs, ContiTech added.
According to Nelles, the “painful measures are necessary to reposition the company for sustained economic growth.”
“Given the current economic headwinds and accelerating pace of technological transformation, we must take action now to safeguard our future,” he added.
ContiTech specialises in the development of rubber-, plastics- and other material-based products and systems.
The Continental group sector has been operating in a new organisational structure since the start of 2024 with a focus on expanding its industrial business.
The planned measures, ContiTech stated, will help “streamline this focus”, and create locations that are “more economically resilient and adapt the product portfolio to shifting demand.”
Impacted locations
At the Bad Blankenburg plant, ContiTech will discontinue the production of conveyor belts with the planned closure affecting 185 jobs at the location.
The move is in response to the “sustained change in demand” due to the phase-out of lignite in Europe.
Conveyor belts from Bad Blankenburg are predominantly used in South America (among others), where ContiTech already operates a facility in Ponta Grossa (Brazil).
The plant in Stolzenau only produces cargo compartment covers and is “dependent” on the economic development of the automotive industry, ContiTech explained.
The plant closure in Stolzenau will affect all 110 jobs at the location.
According to the company, the market for cargo compartment covers “has not recovered as anticipated, and demand has fallen sharply.”
“The location is no longer running at sufficient capacity to sustain its operations, and no improvement to the situation is in sight,” said ContiTech.
Here, the company said it explored the possibility of selling the site or transferring production to other sites, which resulted in no positive outcome.
In Moers, where ContiTech produces “special conveyor belts for niche products”, all 47 jobs will be impacted by plant closure.
With the move, the company will be removing the product from its portfolio.
The dual Geithain and Frohburg locations have been experiencing a decline in demand for blow mould tools in recent years, “with no prospect of significant improvement,” ContiTech explained.
“Extensive efforts were made to restructure the portfolio, but ultimately these were not economically viable,” it said.
All 58 jobs at these locations will be affected by the planned closure.
The restructuring also includes the transfer of air bellows passenger car air springs production to the ‘Continental automotive group’ which is currently being carved out as an independent business.
Wit the move, the ‘automotive’ business will be producing passenger car air springs independently from Continental.
Production at the Hanover-Vahrenwald plant is therefore expected to be discontinued in the first half of 2026 and will be transferred to the Automotive plant in Jicin, Czech Republic, with 126 jobs to be affected by the move.
ContiTech, however, stressed that the Vahrenwald plant would remain “a key location as part of ContiTech’s overall operating strategy.”
In Hamburg, the activities of the future independent business area OESL are to be scaled back and ‘tech centre’ activities such as prototyping and testing will be relocated to Hann. Muenden.
The process will impact 53 of the 107 jobs at the Hamburg location.
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