Continental (PC) (USOTC:CTTAY)
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By Max Bernhard
German car-parts supplier Continental AG (CON.XE) said Wednesday that its supervisory board approved sweeping restructuring measures and gave further details on the plans, which will close plants in Europe and the U.S and affect thousands of jobs.
The board approved structural adjustments for sites in Roding and Limbach-Oberfrohna, as well as Babenhausen, Germany, Newport News, Virginia and Pisa, Italy.
Continental said it will shutter the Roding and Newport News sites in 2024, with around 520 and 720 jobs affected, respectively.
In Limbach-Oberfrohna, Continental plans to discontinue its hydraulic components business for diesel engines in 2028, affecting some 850 jobs.
Production of gasoline engine injectors in Pisa will be phased out between 2023 and 2028, with around 750 jobs impacted.
In Babenhausen, production of display and control systems will be phased out by 2025 and research and development activities will be moved elsewhere by the end of 2021, the company said. Over 2,200 jobs will be affected at the site.
On top of that Continental said its management will soon start talks on its Rubi, Spain site, where it employs 760 people.
Continental presented its decade-long restructuring program at the end of September, which aims to tackle a global slump in auto production. By the end of 2023, about 15,000 jobs could be affected by cuts, possible sales of business areas as well as transfers and digitization among other things, the company said at the time.
Write to Max Bernhard at email@example.com; @mxbernhard
(END) Dow Jones Newswires
November 20, 2019 08:09 ET (13:09 GMT)
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