Continental to stop making tyres at Alor Setar plant

KUALA LUMPUR: Continental will shut down its tyre manufacturing operations at its plant in Alor Setar, Kedah by the end of the year.

The closure of the facility that produces passenger car, light trucks and motorcycle tyres for the Asia Pacific market would affect some 950 employees.

Continental said the company’s priority is to support its employees by providing assistance which includes career counselling as well as exploring potential employment opportunities inside and outside of Continental.

The decision to shut down the Alor Setar tyre plant follows a comprehensive business review to safeguard the company’s competitiveness,and business performance in the Asia Pacific region.

"Adapting to changing customer demand, the company seeks to optimise its local product portfolio and its manufacturing footprint," it said.

Continental also said Malaysia continues to be a key market for Continental in the Asia Pacific region.

"The company reaffirms its commitment to its customers and partners in Malaysia, emphasising that long-term relationships and trust continue to be at the heart of its business in the country," it said.

Continental also said its strong tyre manufacturing network would enable it to serve replacement customers and original equipment customers alike.

Its regional tyre manufacturing plants are in Hefei (China), Rayong (Thailand), Modipuram (India), Kalutara (Sri Lanka) and Petaling Jaya (Malaysia).

The Alor Setar tyre plant, which covers 133,000sq m, started operations on Dec 20, 1979 and became a fully owned subsidiary of Continental in May 2012.