(Reuters) – The Contitech Division of the German automotive supplier Continental will close four factories and reduce the activities of two others in Germany, which will affect a total of 580 employees, the company announced on Thursday.
Continental has been working for more than a year on a large restructuring plan providing for in total the abolition of more than 7,000 jobs in order to save 400 million euros per year from 2025.
Contitech will close its factories of Bad Blankenburg, Stolzenau and Moers, as well as the combined sites of Frohburg and Geithain, all located in Germany.
The production of its Hanover-Vahrenwald factory should also stop in the first half of 2026 and be transferred to the Czech Republic, while the activities of a site in Hamburg should be reduced, the company said.
Faced with low demand, high costs, increasing competition from China and a slower than expected transition to electric vehicles, European car manufacturers have announced several factories and massive layoffs.
“The evolution of the automotive industry and the exploitation of lignite in Europe places us before challenges,” said Philip Nelles, member of the Continental Management Board and director of the Contitech division.
(Written by Tristan Veyet in Gdansk, Noémie Naudin, edited by Blandine Hénault)
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