CHARLOTTE, N.C. (Aug. 2, 2006) — Continental Tire North America Inc. will close its scaled-back Mayfield, Ky., plant in about six months, laying off about 150 workers, the tire maker announced.
Conti already phased out tire production at Mayfield at the end of 2004 and has since continued to make products for other Conti facilities. The tire maker said the closure will have no impact on customers.
Declining business in original equipment passenger and light truck business as well as escalating raw material costs led to Conti's decision to close the plant, the firm said.
“Although we have seen recent improvements in our manufacturing costs and replacement business, we must continue to implement measures to reduce our costs and return CTNA to profitability,” said Alan Hippe, Conti's president and CEO. “Unfortunately, due to escalating costs for energy and raw materials coupled with declining demand for certain original equipment products, today we are announcing our intention to close the Mayfield plant as part of our ongoing efforts to restructure our North American passenger and light truck tire operations in order to further reduce manufacturing costs.”