Leading tyre manufacturer, Continental has confirmed that it will be shutting down its tyre production plant in Aachen Germany as a part of restructuring their European operations.
This decision is said to affect 1,800 of the total 2,000 jobs in the production, development and administration sections of the plant. When asked about why the company is considering this step to shut down the Aachen factory ?- they replied that it is due to the overcapacity. They believe that the plant has been underutilized during these past few years.
Wolfgang Reitzle, chairman of the Supervisory Board, commented, "The fundamental structural transformation of the automotive industry and the challenges presented by the economic and market environment have never been greater."
He added that, "They call for particular entrepreneurial courage and determination. With the resolutions approved today by the Supervisory Board, the foundation for the necessary transformation of Continental has been laid. We have thus substantially enhanced its competitiveness and increased its future viability.
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“We are very aware that the process the automotive industry and we are going through now is indeed painful, and it will continue in the coming years. At the same time, it is opening up new and profitable growth opportunities in a world of mobility that is undergoing fundamental change. Continental is now well positioned to do this. I am firmly convinced that the company will emerge from this unprecedented transformation process all the stronger.”
About continental tyres:
Continental AG, commonly known as Continental, is a German multinational automotive parts manufacturing company specializing in brake systems, interior electronics, automotive safety, powertrain and chassis components, tachographs, tyres and other parts for the automotive and transportation industries. Continental is based in Hanover, Lower Saxony, Aachen Germany. Continental is the world's fourth-largest tire manufacturer.
Continental Tires India:
Continental acquired the Modipuram plant from Modi Tyres Company Private Limited in 2011. Since then, the company has been investing in manufacturing infrastructure, new radial production lines, and also expanding the plant capacity to manufacture world-class tyres ready to meet the customers' requirements for both the local market as well as the ASEAN region.
Further, the tyres plant is gradually adopting Industry 4.0 practices by deploying automation and enabling data exchange in the manufacturing area. Some of the methods include real-time online process analysis, traceability, validation, and inventory management for monitoring end-to-end processes. The highly robust supply chain and benchmarking quality standards ensure quality products are delivered to customers without any disruption and issues.
