Continental’s ContiTech Division Announces Restructuring and Job Cuts in Response to Declining Market Demand

Continental’s ContiTech Division Announces Restructuring and Job Cuts in Response to Declining Market Demand

(IN BRIEF) Continental’s ContiTech division is set to implement structural changes at several German locations due to declining demand in industries such as automotive and lignite mining. Around 580 jobs will be affected, with plant closures at Bad Blankenburg, Stolzenau, Moers, Frohburg, and Geithain, as well as personnel changes at Hanover-Vahrenwald and Hamburg. The closures are a response to market challenges, including supply chain issues and shrinking demand. Continental is committed to managing the transitions responsibly, offering support to affected employees through job assistance programs and training. The restructuring aims to improve operational resilience and better align the business with shifting market needs.

(PRESS RELEASE) HANOVER, 31-Jan-2025 — /EuropaWire/ — In response to ongoing declines in demand in sectors such as automotive and lignite mining, Continental’s ContiTech division is set to implement structural changes across several of its German locations in 2025. Around 580 jobs will be affected as production ceases at various sites, including Bad Blankenburg, Moers, Stolzenau, Geithain, and Frohburg. Additionally, changes in the Hanover-Vahrenwald and Hamburg locations will impact personnel as part of the company’s broader organizational adjustments.

The closures primarily stem from a persistent drop in demand in specific industries. Bad Blankenburg, a plant specializing in conveyor belts, will be shut down, affecting 185 employees, as a result of the ongoing phase-out of lignite in Europe. The Stolzenau location, which produces cargo compartment covers for the automotive sector, will close, impacting 110 employees, due to the automotive industry’s stagnation and insufficient market recovery. Similarly, the Moers plant, which manufactures special conveyor belts, will close, impacting 47 workers, as demand for these niche products continues to decline.

Frohburg and Geithain, both locations involved in blow mold tool production, will also close, affecting 58 employees, due to a prolonged downturn in demand and unviable restructuring efforts. At the Hanover-Vahrenwald site, 126 jobs will be affected by the relocation of air bellows production to an Automotive sector facility in Jičín, Czech Republic, in 2026. Finally, the Hamburg location will scale back its operations in the future independent business unit, Original Equipment Solutions, with 53 of the 107 jobs affected.

Philip Nelles, Head of ContiTech, explained that these difficult measures are necessary to respond to the rapidly changing market landscape, particularly the declines in demand in the automotive and mining sectors. “We must take decisive steps now to ensure the long-term sustainability and resilience of our operations,” said Nelles.

Continental is committed to managing these transitions responsibly, utilizing established tools to support affected employees. This includes job placement assistance and training through the Continental Institute for Technology and Transformation (CITT), as well as collaborations with nearby companies to offer employment opportunities.

Media Contact:

Oliver Heil
Spokesperson EMEA
ContiTech
+49 6196 87-2681
+49 6196 87-79-2681
oliver.heil@continental.com

SOURCE: Continental