HANOVER, Germany — Continental A.G. is set to cut up to 20,000 jobs, including some tire-related positions, by 2029, as part of its newly developed Strategy 2030
The roadmap involves a so-called "transformation 2019–2029 structural program," which aims to increase efficiency and productivity through a turnaround in the organization and portfolio.
Conti said in it expects the restructuring will result in roughly $1.2 billion in costs but eventually will yield $550 million in reduced annual operating costs.
As part of this, the company will cease the production of truck tires at its plant in Petaling Jaya, Malaysia, by year-end, affecting 270 employees. Operational since 1963 and acquired by Conti in 2003, the Malaysian plant also makes agricultural, earthmover and industrial tires.
ERJ is in contact with Continental for comments on the future of the production of other tire types at the plant. It's one of two plants in Malaysia Conti acquired from Sime Darby Bhd. in 2003.
Despite the cuts at the Malaysian plant, the new strategy pledges further investments in the tire division that it expects to foster organic growth in its tire business with the goal of becoming "one of the top three suppliers worldwide."
Between 2011 and 2018, Continental invested more than $1.2 billion in expanding its tire production capacity worldwide.
Transition to future mobility
The restructuring measure aims to strengthen the company's competitiveness over the long term by focusing on electric mobility and digital solutions, Conti said.