CHARLOTTE, N.C (March 10, 2006) — Continental Tire North America Inc. (CTNA) will suspend tire production indefinitely at its Charlotte plant around Sept. 15 if an agreement to cut manufacturing costs is not reached with the United Steelworkers (USW) union.
If the suspension is implemented, about 478 hourly and salaried employees at the facility will be laid off, the company said.
The indefinite suspension plan is part of the firm's restructuring program aimed at reducing manufacturing costs and improving the performance of Conti's North American passenger tire business, according to Alan Hippe, president and CEO of CTNA.
The company said it did not plan to close the plant and will continue rubber mixing, calendering, puncture sealant and warehousing operations to support its other manufacturing facilities.
Conti is in the midst of contract discussions with the USW and has insisted costs must be reduced by at least $32 million yearly at the site.