After 46 years of operations, German tyre maker Continental says it will stop production at its Alor Setar plant in Malaysia by the end of 2025, affecting 950 employees currently employed at the facility.
The German automotive supplier said it will the affected workers both within and outside the company will be looked after. “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,” it said.
“The decision to close the Alor Setar tyre plant follows a comprehensive business review to safeguard the company’s competitiveness, and business performance in the Asia Pacific region,” the company said in a statement.
It added that changing customer demands have prompted the company to optimise its product portfolio and manufacturing footprint locally.
Despite the closure, Continental stressed that Malaysia remains a key market and reaffirmed its commitment to maintaining strong relationships with its customers and partners.
The Alor Setar facility has a long history, having started operations in 1979, and since May 2012 has been a fully owned subsidiary of Continental.
The plant covers an area of approximately 133,000 sq m and produces tyres for cars, small lorries and motorcycles.