HANNOVER, Germany (May 7, 2009)—Continental A.G. is in talks with Middle-Eastern property firm MAG Group about the possible sale of its tire factory in Clairoix, France, as a going concern.
The talks between Continental and Dubai-based MAG deal with a transfer of the plant and its full production capacities, including its personnel, equipment and know-how. Should both sides reach terms, the MAG project will be submitted to the consideration of the representative boards of Continental France, Conti said.
Conti notified workers at the Clairoix plant in early April of its intention to shut the 73-year-old plant by year-end. It cited a need to balance production capacity with shrinking demand. Closing the plant would affect 1,120 employees and take out 8 million units of capacity.