Continental Tire North America Inc. (CTNA) will suspend tire production at its Mayfield tire plant by year-end as planned after rejecting proposals by the United Steelworkers of America (USWA) to keep the plant open.
The tire maker said in a statement that the union's cost-saving plans ``did not represent a viable framework for continuing tire production'' in Mayfield. Conti plans to suspend car and light truck tire production indefinitely by Dec. 31, putting 815 employees out of work.
The USWA estimated its proposals to restructure the work force would have yielded more than $20 million in cost savings annually. In response, Conti said the union's estimate was ``overstated'' and the proposal depended on ``substantial capital investment'' in the plant.