HANOVER, Germany—ContiTech A.G. is planning to sell its Sao Paolo conveyor belt factory in compliance with a requirement imposed when the firm purchased Veyance Technologies Inc. last year.
It also has closed its belting plant in Volos, Greece, operated by subsidiary ContiTech Imas S.A., and it soon will shut down its Bowmanville, Ontario, heavyweight conveyor belt facility because of the continuing global slump in the commodity market, particularly the lignite and coal mining sectors.
Hanover-based Conti-Tech's sale of the Veyance do Brazil facility in Brazil was mandated by Brazilian authorities in order to finalize the purchase of Veyance in January 2015.
It was one of two requirements ContiTech agreed to in order to close the deal. The other was the divestiture of the firm's Veyance's North American air springs business.
ContiTech sold the air springs operation to EnPro Industries Inc., which has made it part of its Stemco division.
Included in the sale were a production plant in San Luis Potosi, Mexico, and a research and development center in Fairlawn, Ohio.
To help facilitate the sale of its Brazilian operation, ContiTech has brought global business adviser Ernst & Young on board.
ContiTech Imas' Sao Paolo plant produces more than 74 miles of steel cord conveyor belts annually, primarily for the mining industry in Brazil, where it claimed to be the largest belting supplier in the country.
While the company acknowledged it is selling the plant, a ContiTech spokeswoman said the process is ongoing, and the firm could not disclose further details at this time.