ContiTech Restructures Amid Market Decline: Closures Planned

Continental’s ContiTech division has announced plant closures and workforce reductions in response to persistent declines in demand within key customer sectors, particularly the automotive industry and lignite mining. The restructuring will impact approximately 580 jobs across multiple locations in Germany, with the company aiming to implement the changes as socially responsibly as possible. The affected plants include sites in Bad Blankenburg, Moers, Stolzenau, Geithain, and Frohburg, with personnel adjustments also expected in Hanover-Vahrenwald and Hamburg.

Key Highlights:

Around 580 jobs to be affected by closures and restructuring.
Bad Blankenburg, Stolzenau, Moers, Geithain, and Frohburg plants set to close due to declining demand.
Hanover-Vahrenwald and Hamburg locations to undergo operational adjustments.
Measures will be structured to support employees, including job transition assistance and training programs.
Continental will work with employee representatives and local companies to facilitate career transitions.

Navigating Market Challenges

Philip Nelles, Continental Executive Board member and head of ContiTech, highlighted the difficult but necessary steps to ensure the company’s long-term stability. “With these planned measures, we are responding to market changes in individual customer sectors – particularly the severe, persistent declines in demand. The painful steps we are initiating are necessary to reposition the company for sustained economic growth.” He emphasized the company’s commitment to helping affected employees transition to new opportunities within Continental or externally.

Restructuring for Future Growth

ContiTech, known for its expertise in rubber, plastic, metal, and textile-based solutions, has been undergoing strategic realignment since early 2024. The upcoming changes will help streamline operations, refocus on industrial business expansion, and enhance economic resilience. The restructuring also includes the phase-out of certain product lines that have become financially unviable due to declining demand.

Employee Support and Transition Programs

Continental is implementing proven transition tools to support affected employees, including:

Career transition programs in collaboration with local industries.
Retraining and reskilling programs via the Continental Institute for Technology and Transformation (CITT).
ContiMotion, a career development initiative co-created with the IG BCE union to provide training and employment opportunities.

Location-Specific Changes

Bad Blankenburg: 185 jobs lost as conveyor belt production ends due to the lignite phase-out.
Stolzenau: 110 jobs affected as demand for cargo compartment covers plummets.
Moers: 47 positions cut as ContiTech discontinues special conveyor belt production.
Geithain & Frohburg: 58 job losses as blow mold tool demand fails to recover.
Hanover-Vahrenwald: 126 jobs relocated as air spring production shifts to the Czech Republic.
Hamburg: 53 positions reduced as operations consolidate with the Hann. Münden facility.

With 22 ContiTech locations in Germany and approximately 11,000 employees, Continental aims to minimize the impact of these closures by offering alternative employment paths and leveraging its extensive network to assist affected staff.