German auto supplier Continental has recently announced that it be shuttering its tyre manufacturing at its plants located in Alor Setar, Kedah, by the end of this year.
In a statement by the company, it said the move was its effort to “optimise its local product portfolio and its manufacturing footprint” while “adapting to changing customer demand”, reported FMT.
The move comes after Continental conducted an extensive business review focused on accentuating the company’s competitiveness and overall performance in the Asia-Pacific region.
950 workers affected by closure
With the impeding closure of the Alor Setar plant, which produces tyres for cars, small lorries and motorcycles, a total of 950 workers are set to be jobless. However, Continental assured that it would provide assistance to them.
The company’s priority is to support its employees by providing assistance and support, such as career counselling as well as exploring potential employment opportunities inside and outside of Continental.”
The company also said it stays committed to its customers and partners in Malaysia as the country serves as a key market within the Asia-Pacific region.
Originally having started operations in 1979, the Alor Setar plant came under Continental’s fold in 2012 and boasts of a facility spanning 133,000 sq m.
Outside of Malaysia, Continential has manufacturing facilities in Hefei (China), Rayong (Thailand), Modipuram (India) and Kalutara (Sri Lanka).
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