Conti pulls out of Moscow, considers closing Hanover tyre factory

Hanover--Continental AG has decided to pull out of its joint venture with Moscow Tire Factory. The company put the venture on hold, freezing further payments a month ago.

Separately, AFX is reporting that the company is considering closing its tyre factory at Hanover-Stöcken. A spokeswoman for Continental said the company is considering ending car tyre production at Stöcken after 2006, but that decision is not yet final, and will depend on the market and cost position of the factory. She said Conti intends to discuss options with the works council at Stöcken.

The AFX report added that ContiTech would lose 1000 jobs following the merger of Contitech and Phoenix AG, including 130 jobs with the closure of a ContiTech plant in Cologne.

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AFX (Germany) story

Press release from Continental AG about Moscow Tire joint venture

AFX (Germany) story about Stöcken plant (Via FT.com website-- subscription to FT required)