Continental to exit agricultural tire business by yearend

Hanover, Germany – Continental AG is streamlining its commercial speciality tires operations with a planned exit from the farm tire business by the end of the year.

Instead, the German group will focus its off-road operations on material handling, earthmoving and port operations tires, said Continental in a 4 April announcement.

The Hanover-based group said it made the decision following “a comprehensive business review.”

“As the market for agricultural tires has undergone strong disruptions in recent years, Continental’s ambition is no longer compatible with the increasing commoditisation of the market,” it explained.

Continental’s manufacturing site in Lousado, Portugal will be the main location affected by the move.

The group said it will be supporting the employees impacted by the decision through offering alternative jobs within Continental.

“Sharpening the focus… will further leverage our resources towards our strengths in material handling, earthmoving and port operations tires,” said Paul Williams, head of Continental commercial speciality tires.

Continental said it would fulfil all contractual delivery obligations towards its customers of agricultural tires until the end of the year.

The group will also continue to manufacture its ‘multi-purpose tires’ as part of its speciality tires operations.