KUALA LUMPUR: Continental will shut down its tyre manufacturing operations at its Alor Setar plant by the end of 2025.
In a statement today, the company said that the decision to close the plant was made after a comprehensive business review to safeguard the company’s competitiveness and business performance in the Asia-Pacific (APAC) region.
“Adapting to changing customer demand, the company aims to optimise its local product portfolio and its manufacturing footprint,” it said.
Continental said that despite the closure, Malaysia continues to be a key market for the company in the APAC 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,” Continental said.
The Alor Setar plant began its operations on Dec 20, 1979, and became a fully owned subsidiary of Continental in May 2012. The facility currently employs 950 workers.
Affected employees will receive support, including career counselling and assistance in exploring employment opportunities both within and outside of Continental, the company said.
The move will leave Continental, which serves both replacement and original equipment customers, with only one manufacturing facility in Malaysia, which is located in Petaling Jaya, in addition to the facilities in China (Hefei), Thailand (Rayong), India (Modipuram) and Sri Lanka (Kalutara).
