CHARLOTTE, N.C. (Jan. 12) — Continental Tire North America Inc. plans to invest $60 million to $70 million in its Mount Vernon, Ill., passenger and truck tire plant to improve efficiency and increase productivity.
Conti said the project will include a combination of capital improvements and the restructuring of tire operations to bring overall manufacturing costs in line with global competition. The restructuring involves a 10-percent reduction in wages for hourly employees, who also will have to contribute the same as salaried employees for health insurance. Salaried employees have faced similar reductions in recent years, Conti said.
"We are asking that sacrifices be made, but we are also investing in the future of the Mount Vernon facility," said Alan Hippe, president and CEO of Continental Tire North America.
Conti employs about 1,150 at the 31-year-old Mount Vernon plant.