Hannover, Germany ContiTech, the industrial arm of Continental A.G., is undertaking a major reorganization of its hose plants in Germany that will affect up to 870 jobs between now and 2025.
As part of this move, the German manufacturer will consolidate the operations of its Mobile Fluid Systems (MFS) business in Waltershausen, Kolbach and Odersheim as well as Odersheim/Hann. Muenden production network.
hoses
Conti said in a June 24 press release that the business area will be "strictly aligned" with the requirements of the automotive and commercial vehicle markets, which have been changing over the years.
Philip Nelles, head of the ContiTech division, said: “We want to use our materials and process expertise in such a way that the business area Automotive Hoses and Production Lines is ready to face the future of automotive and truck electronics. Competition in mobile."
Conti said that the transformation of the automotive industry has led to overcapacity of
internal combustion engines rubber hoses .
The company added that high cost pressures and the related need to ensure the competitiveness of the hose business also contributed to the decision to reorganize.
At the same time, Conti noted that new growth opportunities are emerging due to the transformation of the automotive industry, such as thermal management systems for batteries and fuel cell vehicles .
"In the future, we want to focus on these promising applications," Nels said.
Within the business area, Continental produces lines, hoses and clutches at more than 30 locations worldwide for manufacturers of electric, hybrid and combustion vehicles as well as trucks and buses.
In the coming years, the Walterhausen, Kolbach and Odersheim plants will develop into "centres of excellence" for the manufacturing of hose connection applications for the automotive and commercial vehicle industries.
In Korbach, ContiTech plans to invest almost $4.6 million (€4.5 million) to strengthen its industrial hoses business and expand its expertise in "rubber products" in Korbach.
"At the Kobach plant, Continental is diversifying its product portfolio for applications in various industries, such as pump manufacturers," the company said.
In Walter Schaussen, ContiTech employs 1,000 people in three business areas and the focus will shift to plastics processing as well as modern mixing technology.
Conti produces, among other products, rubber compounds, printing blankets for the printing industry, manifolds and air conditioning hoses, as well as Waltershausen plastic hoses for the automotive industry.
The German group has invested more than $8.1 million in the site over the past four years, including $4 million for modern hybrid technology and additional storage capacity.
A further $4 million has been invested in plastics manufacturing, making the site a "center of excellence" for plastics processing.
As part of the reorganization, the production of air conditioning hoses will be transferred from Waltershausen, which will create up to 190 jobs at the site by the end of 2025.
in Oedelsheim/Hann. Muenden is located 25 kilometers away, and Continental will consolidate production in Oedelsheim.
The two sites currently employ around 750 people in total, but Conti expects the move to Oedelsheim to affect 300-350 of Hann's 560 jobs. Moonden.
ContiTech said the Oedelsheim plant will focus on silicon manufacturing and pressurized air hoses.
In Northam, where Conti employs more than 1,650 people across four business areas, ContiTech plans to phase out the manufacturing of automotive hoses by the end of 2024.
ContiTech said the move will affect 300 jobs and is driven by the transformation of the automotive industry.
The plant will continue to produce conveyor belts and systems, elastomer coatings and precision seals, as well as molded parts for brakes, steering and axles.
Continental said that the next step is to start a dialogue with local employee representatives.
The organization said it was working to find individual solutions on the internal and external labor market for employees in affected areas.
