HANOVER, Germany — Continental A.G.'s plan to spin off its automotive systems/components business and restructure around its tire and rubber activities will include hiving off the automotive original equipment solutions business within the ContiTech industrial rubber business unit.
Conti said it is "presenting" this business unit— which develops and produces hose lines, bearing elements and drive belts for the global automotive industry — to potential buyers and partners. The sale process could start as early as the first quarter of 2025.
The business area employs over 16,000 at 40 facilities in 16 countries. Conti did not identify which physical assets would be included nor quantify the business unit's sales revenue.
ContiTech was established as separate business unit in 2021.
This additional piece of Conti's restructuring plan was disclosed as part of an announcement by the firm's executive board that it supports the restructuring initiative. The plan still must be approved by Conti's supervisory board — which includes representatives from the firm's various trade unions — in March and by shareholders at the annual meeting in April
The plan is to spin off the automotive-systems business as a European company (Societas Europaea S.E.) listed on the Frankfurt Stock Exchange by year-end 2025. The businesses to be spun off or sold represent over half of Continental's annual sales revenue.
The independent company will operate under a new brand, which is to be launched by the end of April 2025. The company will be led by Philipp von Hirschheydt, who has headed the group sector as a member of Continental's executive board since May 2023.
"Our entire team is highly motivated and focused on preparing for the spin-off," Hirschheydt said. Short- and mid-term targets for the automotive as an independent company will be disclosed at Automotive's Capital Market Day scheduled for summer 2025.
Wolfgang Reitzle, chairman of Continental's supervisory board, added: "The executive board's decision is an important milestone in steadily increasing the value of Continental. I firmly believe that the Automotive spin-off will unlock new strengths, because focused companies are more agile, especially in times of transformation."
