Continental streamlining its hose production in Germany

Continental has announced a reorganisation within its non-tyre business that will lead to the closure of one of its factories in Germany and affect up to 870 jobs. These changes are taking place within the company’s ContiTech group sector and specifically apply to the Mobile Fluid Systems (MFS) business area, and are occurring as the sun continues to set over Germany’s ICE vehicle sector.

Production at the Hann. Münden facility south of Continental’s hometown of Hannover will be merged into the nearby Oedelsheim plant. Although Continental intends to expand remaining production sites in a way that ensures a “significant proportion” of jobs can be transferred, the closure of production operations in Hann. Münden will affect a total of about 300-350 of the approximately 560 jobs there.

Jobs are also going at the Northeim plant, which currently produces for four ContiTech business areas. Continental will phase out the manufacture of automotive hoses by late 2024 in response to the technological transformation that’s occurring within the automotive industry. More than 300 jobs are expected to be impacted by the move. The production of conveyor belt systems, elastomer coatings and precision seals as well as moulded parts for brakes, steering and axles will remain in Northeim, with approximately 1,350 people employed at the site after the measures have been implemented.

Continental’s other hose production facilities in Germany are located within its Waltershausen, Korbach, and Northeim sites. The company shares that these will be “developed into centres of excellence for the manufacture of hose connection applications for the auto and commercial-vehicle industry” in the coming years.

Economic & political situation driving changes

The aforementioned changes are taking place as part of wider moves by Continental to “rigorously align” its MFS business area so that it matches automotive market needs. “As a development partner and original equipment manufacturer to the automotive industry, 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,” says Philip Nelles, who heads the ContiTech group sector.

Continental refers to the changes it is making as a transformation and states that this is being “accelerated enormously due to the current overall economic and political situation.” In addition to overcapacities for rubber hoses used in combustion engines, another reason for the reorganisation is cost pressure and the associated need to secure the hose business’s competitiveness. At the same time, the company has also identified new growth opportunities. For example, battery and fuel cell vehicles require innovative solutions for hose components and complex line systems for thermal management. “In the future, we want to concentrate on these promising applications,” Nelles adds.