Charlotte, North Carolina - Continental Tire North America Inc. will close its scaled-back Mayfield, Kentucky, plant in about six months, laying off about 150 workers, the tyre maker said on Wednesday.
Conti already phased out tyre production at Mayfield at the end of 2004 and since has continued to mix rubber for other Conti facilities. The tyre maker said the closure will have no impact on customers.
Declining business in original equipment passenger and light truck business as well as escalating raw material costs led to ContiÂ´s decision to close the plant, the firm said.
Alan Hippe, Conti president and CEO, said although the firm has seen improvements in manufacturing costs and its replacement tyre business, it still must reduce costs to return Conti to profitability.
Conti said it plans to work with federal, state, and local government officials to provide transition assistance to the laid-off employees. It also has offered to meet immediately with the United Steelworkers union to negotiate layoff benefits for displaced hourly employees.
From Rubber & Plastics News (A Crain publication)