© Continental Electronics Production | July 16, 2020
Conti takes the next steps in its transformation – will close locations
The Supervisory Board of Continental AG has approved the next steps of the Transformation 2019–2029 structural program at the locations in Rubí, Spain, and Nogales, Mexico.
In doing so, the technology company is pushing forward with the implementation of its structural program which it announced back in September 2019. The program aims to strengthen the company’s long-term global competitiveness to ensure its viability in the future. One of the decisions of the Executive Board was to close the location in Rubí, Spain, by the end of 2021. An extensive search for potential investors over a period of months has yielded no results to date. As a consequence, the production of display and control technologies at the location is to be gradually phased out or transferred to other European locations by 2021. A pre-agreement has been drawn up together with the employee representatives and labor unions for the approximately 740 people employed at this location. The resolution is still subject to the formal conclusion of a consultation phase, which is required in Spain in the event of restructuring. Furthermore, the Supervisory Board also approved the closure of the Nogales location in Mexico. The production of vehicle communication and connectivity technology and drive system components at the location will be gradually phased out probably by mid-2024, with some activities transferred to other locations in the region. The Nogales location currently has about 2’000 employees. The decision was made in view of growing cost pressure, which makes it necessary to concentrate regional production in other locations to enhance competitiveness.