German tech firm Continental says it is realigning its ContiTech group sector, which specialises in material-driven solutions, with the aim of increasing effectiveness and efficiency as well as customer and market proximity. To this end, the group sector will focus even more strongly on the expansion of its industrial business. ContiTech is also consolidating its automotive business in order to create synergies. The changes will come into effect at the beginning of May 2023.
ContiTech serves various markets on and off the road, on rails, in the air, under and above ground, in industrial environments, in the food sector and in the furniture industry.
With its realignment, ContiTech is laying the groundwork for its transition from a traditional product supplier to a provider of integrated solutions. In addition, the group sector aims to respond in a more integrated way to the constantly changing requirements of its customers in various markets and industries.
“We are enhancing our profile and are becoming more efficient by consolidating our activities. This will increase our competitiveness and create a strong foundation for our future success in terms of earnings and growth,” says Philip Nelles, member of the Continental Executive Board/CEO of the ContiTech group sector, explaining the aim of the realignment. The ambition is clear: “In our industries and markets, we want to be a technological leader for material-driven solutions.”
The realignment has two strategic priorities: “We want to further develop our industrial business and create synergies for our automotive activities,” Nelles continues. This part of the ContiTech business is facing particular challenges due to the current transformation in the automotive industry. The focus is therefore also on increasing speed and efficiency, for example by accelerating decision-making processes, streamlining central functions and reducing hierarchical levels. The reorganisation of the group sector is geared to the best possible customer approach in its various markets.
In line with the prevailing customer structure, the industrial business will be divided into three business areas with a regional focus: Industrial Solutions Americas, Industrial Solutions APAC (Asia & Pacific) and Industrial Solutions EMEA (Europe & Middle East).
The majority of ContiTech’s automotive activities will be consolidated in the Original Equipment Solutions business area, which will operate globally in accordance with its customer structure.
The Surface Solutions business area will retain its current structure due to the nature of its own portfolio and customer base and its high degree of product development connectivity between its segments. The Automotive Interior segment will serve suppliers to the automotive industry, while LivTec will focus on private consumers.
Within ContiTech’s central functions, the new position of a Chief Technology Officer will drive the expansion of its materials expertise. This will be achieved through comprehensive and cross-functional research activities as well as the development of material-driven, value-creating and sustainable solutions for customers, it adds.