Continental AG recently announced plans to exit the agricultural tire business by the end of the year and refocus its OTR business on material handling, earthwork, and port operations.
Continental announced that this decision was made following a comprehensive business review triggered by severe disruptions in the agricultural tire industry in recent years.
It is understood that Continental had discontinued its agricultural tire business for ten years before resuming it for another eight years, until this latest exit.
The affected employees are primarily located at Continental's tire factory in Lousado, Portugal, where the company has been producing agricultural tires since 2016.
Continental will support each employee through this transition period and is confident that it can offer alternative positions within the company for most affected employees. The Losada plant, acquired in 1993, is also capable of producing larger-sized radial earthwork and port material handling tires.
Continental said it would fulfill all contractual delivery obligations to its agricultural tire customers by the end of the year.
The company also stated that it will strengthen its focus on commercial specialty tire business in the future, further leveraging its resources to capitalize on its strengths in tires for material handling, earthmoving, and port operations.
Currently, Continental produces specialty tires at its factories in Korbach, Germany, and Petaling Jaya, Malaysia, and manufactures solid tires through its subsidiary Eu-Retec (Pvt.) Ltd. in Sri Lanka.
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