Continental‘s board has approved the closure of its Rubi plant in Spain by 2021 and the Nogales site in Mexico by 2024.
The supervisory board approved the next steps of the Transformation 2019–2029 structural programme at the locations in Rubí and Nogales.
In its first resolution, the supervisory board approved the decision of the executive board to close the location in Rubí, Spain, by the end of 2021.
“An extensive search for potential investors during a period of months has yielded no results to date,” said a Continental statement. “As a consequence, 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 labour unions for the around 740 people employed at the location. The resolution is subject to the formal conclusion of a consultation phase, which is required in Spain in the event of restructuring.
This phase involves the representatives of Continental, employee representatives and local authorities.
Furthermore, the supervisory board 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 around 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,” added Continental.