Continental to cease roller and sleeve production at year's end

WALTERSHAUSEN, Germany—Continental A.G. will stop production of rollers and sleeves for industrial uses, including the printing industry, by the end of this year.

About 20 employees in Waltershausen will be affected by the production stop, which is a function of a strained economic environment in the roller and sleeve industry over the past several years, according to the ContiTech division.

There are about 1,000 employees in total at the production site.

"We regret this economically necessary step," said Andreas Bakenhus, head of the Continental Elastomer Coatings business segment in the EMEA region. "We would like to thank our colleagues who have perseveringly dedicated themselves to the production of rollers and sleeves. Unfortunately, despite our best efforts, the headwinds from the difficult market environment were too strong."

Those headwinds included high competition and cost pressure in the roller and sleeve space, the company said.

"A cost-cutting program initiated in 2021 did not bring the hoped-for turnaround in the product segment," ContiTech said in a Sept. 9 news release. "Investigations into alternative approaches failed to produce practicable results."

However, the printing industry remains an important part of Continental's business, as offset printing blankets and other printing technologies will continue under the ContiTech division.

"Despite the obvious challenges, we believe in the future of the printing industry," Bakenhus said. "That's why we're adapting our portfolio to supply our customers with products that are both high-quality and cost-effective."

Continental A.G. acquired Trelleborg Group's printing solutions business in May 2023 for $148.5 million.

Based in Lodi Vecchio, Italy, the printing solutions business manufactures printing blankets in polymer-coated fabrics. Printing blankets are used for all types of offset printing, as well as flexo and digital printing.

The operation also includes a carrier sleeve product line for packaging flexo printing.

Continental, for its part, said the printing blankets business complements its surface solutions and printing technology portfolio and enhances its presence with industrial customers.

"Printing technology customers will also benefit from a broader global footprint," Thomas Christensen, who is responsible for Conti's global printing solutions business, said in November 2023.

Continental A.G. comprises ContiTech, automotive and tire segments, and is considering spinning off its automotive division by the end of 2025.

Should the board agree to the move, the company would essentially be halved.

In 2023, the automotive division saw sales of about $22.3 billion, while the ContiTech, tire and plastics businesses posted combined sales of around $22.5 billion.

Both groups employ around 100,000 employees.

In 2023, Continental A.G. generated sales of $45.6 billion and currently employs around 200,000 people in 56 countries and markets.