MAYFIELD, Ky. (April 23, 2004) — Continental Tire North America (CTNA) Inc. plans to cut daily production 33 percent at its Mayfield plant by July.
Production at the plant will fall from 10,900 tires a day to 7,300 tires, and 200 hourly employees will be laid off, Continental said.
“We must remain cost-competitive in our industry, and to this end, we continuously evaluate all our production facilities,” said Martien de Louw, president and CEO of CTNA. “Frankly, we agonized over a number of scenarios for improving manufacturing logistics, but the Mayfield plant continues to be the highest-cost production facility for Continental in North America.”
A spokesman said the tire maker will look into market needs to determine if some of the production will be picked up by other plants. “Any product that will be needed for the marketplace will be made in whatever facility we feel is best to make it in,” he told Tire Business.
Last October, Continental announced it was cutting production at the Mayfield plant by 3,100 tires, or 22.1 percent of its daily output. In that case, 200 workers also were laid off.
This month an analysis by Morgan Stanley Equity Research Europe suggested that Continental would have to close a plant—likely Mayfield—to reach its break-even target. But the spokesman said today no decision has been made to close the Mayfield facility.