Stiebel Eltron to Move into Continental’s Gifhorn Site

HANOVER, Germany – Stiebel Eltron is planning to set up a stainless-steel cylinder production facility for heat pump heating systems at Continental’s location in Gifhorn, Germany.

Continental earlier this month announced it would be phasing out automotive-related operations at Gifhorn by 2027. The production site currently forms part of Continental’s Safety and Motion business area in the automotive group sector.

Negotiations on possible uses for the Gifhorn location by Stiebel Eltron are to begin immediately. The aim is to offer long-term employment opportunities to as many suitably qualified employees as possible.

The agreement is the first major result of Continental’s “from work to work” initiative, which, through appropriate training, aims to ensure a seamless transition to a new job within Continental or on the external job market for employees. To achieve this, Continental is currently in talks with several companies.

The company’s phase-out plans included relocating the assembly of the latest generation of air supply systems in 2024 and relocating the replacement part business – primarily for air springs and compressors – from 2024 onward.

Continental is also planning to outsource the production of valve blocks and piston crowns for brake systems to suppliers by the end of 2027.

These measures will affect approximately 450 of the approximately 900 jobs currently based in Gifhorn (including temporary workers) and are being taken against the backdrop of the sharp rise in cost pressure within the automotive industry, declining automotive markets and the location’s uncompetitive cost structure compared with international peers.

“It remains our firm intention to move as many of our employees as possible from work to work,” said Dr. Ariane Reinhart, Continental Executive Board member for Human Relations and Sustainability. “The talks with Stiebel Eltron are an important step in this regard, and I’m delighted we’re able to present our employees with the first potential opportunities for the future.”

The Gifhorn location was founded in 1951 by Alfred Teves as a brake production site. Since being taken over by Continental in 1998, it has specialized in the production of components for brake, stability and chassis systems.


Mike Geylin
Mike Geylin

Mike Geylin is the Editor-in-Chief at Hagman Media. Geylin has been in automotive communications for five decades working in all aspects of the industry from OEM to supplier to motorsports as well as reporting for both newspapers and magazines on the industry.