German auto supplier Continental has announced it will discontinue its tyre manufacturing at its plant in Alor Setar by the end of the year.
The decision follows an extensive business review focussed on enhancing the company’s competitiveness and overall performance in the Asia-Pacific region.
“Adapting to changing customer demand, the company seeks to optimise its local product portfolio and its manufacturing footprint,” it said in a statement today.
According to Continental, the Kedah facility, which produces tyres for cars, small lorries and motorcycles, employs 950 workers.
“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.
Despite the closure, Continental said it remains committed to its customers and partners in Malaysia as it is a key market within the Asia-Pacific region.
It added that the Alor Setar plant had been part of the company since 2012, though it originally began operations in 1979.
The facility spans 133,000 sq m and has been an integral part of the company’s operations in Malaysia.
