Continental is to phase out production at its at the company’s Gifhorn plant in Germany by the end of 2027.

The executive board has signed off relocation of air supply systems assembly by 2024 and the replacement part business, primarily focused on air springs and compressors, starting the same year.

Other plans call for outsourcing brake system valve blocks and piston crowns to external suppliers by the end of 2027.

About 450 of the current 900 jobs at the factory would be axed.

Continental said the decision was driven by rising cost pressure and declining automotive markets.

The company will help workers find new roles either within the supplier or externally.

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It is also investigating potential future uses for the Gifhorn site including by other companies.