Conti may cease Belgian plant production

HANOVER, Germany (Feb. 12)—Continental A.G. has notified workers at its Uniroyal Englebert S.A. plant in Herstal, Belgium, that it may phase out production of medium truck tires at the plant and at the same time expand other manufacturing activities. Herstal is one of four Conti plants in Europe making truck tires, the market for which has plateaued in recent years, leading to intense price competition and falling margins, Conti said. The company also cited high manufacturing costs and the need for further investment to improve Herstal´s competitiveness. Production of truck tires at the 37-year-old Herstal plant provides employment for 777 hourly and salaried workers, Conti said. At the same time, Conti started production of passenger tires at the plant last year using its proprietary Modular Manufacturing Process; that line created 100 jobs. If Conti decides to end truck tire production there, it would participate in efforts to find the affected workers new employment, the company said.