CLAIROIX, France (Nov. 25, 2009)—Workers' representatives at Continental A.G.'s tire plant in Clairoix have approved a package of social measures for the 1,120 employees affected by the planned closing of the plant next year.
Conti notified workers in March that it intended to close the 73-year-old factory by the end of the first quarter of 2010. At the time, the tire maker cited a steep drop in OE tire sales and a marked deterioration in replacement markets for its decision.
The social plan—which among other things will pay each worker roughly $70,000—is expected to be implemented at the beginning of 2010. Conti did not disclose other details of the plan.
“We will now do our best in order to help and support as many employees as possible to find a new job in a timely manner,” said Nikolai Setzer, the executive who oversees Conti's passenger/light truck tire division.
Workers at the plant approved the measures nearly six months ago, but the plan also had to be reviewed by the central works council of Continental France S.N.C. Conti operates a second plant in France, in Sarreguemines, that will remain open.
The Clairoix plant, opened originally by the Belgian tire maker Englebert and acquired by Conti in 1979, has a rated capacity of 7.9 million tires a year.