Continental to close Romania plant - Just Auto
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Continental to close Romania plant

By Graeme Roberts 14 Jun 2021

Lower demand for ICE vehicle parts as automakers switch to EVs will see Continental close a plant in Romania.

Continental will close its induction systems factory in Nadab, in Romania’s Arad county, and transfer the work to its heating/cooling rubber hoses unit in Carei, in Satu-Mare,  local reports said.

According to romaniainsider.com, citing Profit.ro, the operational transfer from Nadab to Carei will be made gradually, until mid-2022, an announcement from the supplier said.

Over 300 workers at Nadab plant are affected by the transfer and will be offered relocation to Carei while a small number will be relocated to Timisoara, Continental said.

It would offer a compensation package in accordance with local laws to employees who did not want to transfer.

Other Continental locations in Romania will not be impacted, the reports said.

The transfer of operations to Carei comes as volume of air induction and heating/cooling systems are declining because of the transfer to electric vehicles, the supplier said.

It plans to “continue developing the local organisation by consolidating and increasing the activity of the Carei plant as a main location of tyre and assembly operations, where automotive hoses which help lower emissions and support the management of thermal solutions for passenger and commercial vehicles are manufactured. At the same time, the ContiTech unit in Timisoara will play an important part in the air conditioning hoses manufacturing and assembly operations”.

The Nadab factory manufactures curved, straight and convoluted air induction hoses with output of approximately 13m products per year for passenger cars and hybrid and commercial vehicles. Carei manufactures heating/cooling rubber hoses and air induction hoses with yearly output of 27m parts for passenger and commercial vehicles.

Continental Romania has seven production units and four engineering centres in Timisoara, Sibiu, Carei, Nadab, Brasov and Iasi.

The company is also a partner in a joint venture in Iasi and has a tyre distribution centre in Bucharest. At the end of 2020, it had more than 20,100 employees, romania-insider.com said.