HANOVER, Germany—Continental A.G.'s industrial arm ContiTech is launching a major restructuring of its hose sites in Germany, which will see up to 870 jobs impacted between now and 2025.
As part of the move, the German manufacturer will consolidate operations of its mobile fluid systems (MFS) business across sites in Waltershausen, Korbach and Oedelsheim sites, as well as its Oedelsheim/Hann. Muenden production network.
The business area, Conti said in a June 24 news release, will be "rigorously aligned" with the requirements of the automotive and commercial vehicle markets, which have been undergoing constant change for several years.
"We want to use our material and process expertise in such a way that the business area for automotive hoses and lines is ready to face future competition in the field of e-mobility for cars and trucks," said Philip Nelles, head of the ContiTech sector.
According to Conti, the transformation within the automotive industry has led to
overcapacities for rubber hoses for combustion engines.
The company added that the high-cost pressure and the associated need to secure the competitiveness of the hose business also contributed to the decision to reorganize.
At the same time, Conti noted that new growth opportunities, such as thermal management systems for battery and fuel cell vehicles, are emerging due to the transformation of the car industry.