Continental to discontinue tire production at Malaysian plant

Kuala Lumpur – Continental has announced that it will cease tire manufacturing operations at its Alor Setar production plant in Malaysia by the end of 2025.

Operational since 1979, the Alor Setar facility has been one of Continental’s two tire production plants in the country and has been fully owned by the German group since 2012.

The plant has a capacity to produce 3 million units of passenger car, light truck, and motorcycle tires for the Asia-Pacific (APAC) market, according to Continental.

The decision to close the facility follows Continental's “comprehensive business review” aimed at maintaining competitiveness and improving business performance in the APAC region.

“Adapting to changing customer demand, the company seeks to optimise its local product portfolio and manufacturing footprint,” Continental stated on 28 April.

The closure will impact 950 employees currently working at the Alor Setar facility.

However, Continental emphasised that Malaysia will remain a key market for the group in the APAC region. 

The group also oeprates an off-road tire production unit in and Petaling Jaya, Malaysia.

In a statement to ERJ, the Hanover-based group said it “has a stable and reliable manufacturing footprint" in the APAC region.

"The product portfolio currently at the Alor Setar plant could potentially be redistributed [across APAC operations],” it added.

Continental operates tire production facilities in Hefei (China); Rayong (Thailand), Modipuram (India) and Kalutara (Sri Lanka) and Petaling Jaya.