ContiTech announces major restructuring of hose business

Hanover, Germany – Continental AG’s industrial arm ContiTech is launching a major restructuring of its hose sites in Germany, which will see up to 870 jobs impacted between now and 2025.

As part of the move, the German manufacturer will consolidate operations of mobile fluid systems (MFS) business across sites in Waltershausen, Korbach, Northeim as well as the Oedelsheim/Hann. Münden production network.

The business area, said Conti in a 24 June statement, will be “rigorously aligned” with the requirements of the automotive and commercial vehicle markets, which have been undergoing constant change for several years.

"We want to use our material and process expertise in such a way that the business area for automotive hoses and lines is ready to face future competition in the field of e-mobility for cars and trucks,” said Philip Nelles, head of ContiTech sector.

According to Conti, the transformation within the automotive industry has led to
overcapacities for rubber hoses for combustion engines.

Furthermore, the high cost pressure and the associated need to secure the competitiveness of the hose business also contributed to the decision to reorganise.

At the same time, Conti noted that new growth opportunities, such as thermal management systems for battery and fuel cell vehicles, are emerging due to the transformation of the car industry.

“In the future, we want to concentrate on these promising applications,” Nelles said.

Within the business area, Continental produces lines, hoses, and clutches at more than 30 locations worldwide for manufacturers of electric, hybrid and combustion vehicles, as well as trucks and busses.

In the coming years, the Waltershausen, Korbach and Oedelsheim sites will be developed into “centres of excellence” for the manufacture of hose connection applications for the auto and commercial-vehicle industry.

In Korbach, ContiTech aims to invest €4.5 million to enhance its industrial hose business and expand expertise in “rubber piece goods” in Korbach.

“At the Korbach site, Continental is diversifying its product portfolio for applications in various industries, for instance for pump manufacturers,” it said.

In Waltershausen, where ContiTech employs 1,000 people across three business areas, focus will be shifted towrds plastics processing as well as modern mixing technologies.

Among other products, Conti manufactures rubber compounds, printing blankets for the print industry, manifolds, and air-conditioning hose lines, as well as plastic hoses for the automotive industry in Waltershausen.

The German group has invested over €8 million in the site over the past four years, including €4 million in modern mixing technology and additional storage capacity.

Another €4 million has been invested in plastic manufacture, making the site a “centre of excellence” for plastics processing.

As part of the reorganisation, air-conditioning hose production will be moved away from Waltershausen, impacting up to 190 jobs at the site by the end of 2025.

In the Oedelsheim/Hann. Münden location, spread across sites 25km apart, Continental will consolidate production in Oedelsheim.

Combined the two sites currently employ a total of about 750 people, but Conti expects the transfer to Oedelsheim to impact 300-350 of the 560 jobs in Hann. Münden.

The Oedelsheim site will focus on silicon manufacture and charge air hoses, according to ContiTech.

In Northeim, where Conti employs more than 1,650 people across four business areas, ContiTech aims to phase out the manufacture of automotive hoses by late 2024.

The move, which will impact 300 jobs, is prompted by the transformation of the automotive industry, according to ContiTech.

The site will continue the production of conveyor belt systems, elastomer coatings and precision seals as well as moulded parts for brakes, steering and axles.

As a next step, Continental said it planned to start a dialogue with the respective local employee representatives.

The group said it was trying to find individual solutions on the internal and external labour market for employees at affected locations.