Continental has announced that it will focus its specialist tyre business on material handling, earthmoving, and port operations, and will discontinue agricultural tyres by the end of 2025.
The decision comes following a comprehensive business review, with the market for agricultural tyres being recognised for the recent disruptions.
The company states that its ambitions are no longer compatible with the commoditization of the market. Employees affected are nearly all based at the Lousado tyre plant but the company is confident that it will offer alternative jobs within the business.
“We are proud of the contributions we as a team have made to the agricultural industry and the trustful relationships we have built with our customers and partners,” says Paul Williams, head of Continental Commercial Specialty Tires.
“Sharpening the focus of our Commercial Specialty Tires business will further leverage our resources towards our strengths in Material Handling, Earthmoving and Port Operations Tires.”
Independent sectors
Further details about the future of the company were revealed at the annual shareholders meeting, in which CEO Nikolai Setzer stated that the business would be transforming its automotive, ContiTech and tyre sectors into independent entities.
It’s unclear at this point if any of the tyre ranges with crossover into other industrial sectors will be affected, although the company has announced that the Multi-Purpose Tire (MPT) will continue to be produced.
All contractual obligations for agricultural tyres will be fulfilled.