Automotive solutions provider Continental announced its intention to separate from its ContiTech business, with a sale being the most likely option.
On April 8, Continental said that it is evaluating options for restructuring ContiTech, with the goal of transforming it into an independent entity focused on manufacturing products such as hoses, conveyor belts, as well as materials for vehicle interiors.
ConiTech is a manufacturer of rubber and plastic products and components for off-highway, transportation, industrial, automotive markets and more. Its products currently include hoses, conveyor belts and vehicle interior materials.
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German-based Continental is currently in the process of spinning off its automotive division, which it intends to list on the Frankfurt Stock Exchange by the end of this year. At the same time, Continental is seeking to divest ContiTech’s Original Equipment Solutions (OESL) business, which supplies rubber products to automotive manufacturers.
On April 4, Continental said it will discontinue its Agricultural Tires segment by the end of 2025 to focus its Commercial Specialty Tires business on materials handling, earthmoving and port tires.
The company stated that once the separation of ContiTech and the automotive units is complete, it will streamline its operations to focus solely on tire manufacturing.
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“Over the past 30 years in particular, Continental has used targeted acquisitions and organic growth to build up three strong group sectors in their respective industries,” Continental CEO Nikolai Setzer said April 8. “These are now ready for independence. Today’s highly dynamic markets also call for focused, agile and decisive action. Now is therefore the right time to initiate the most far-reaching realignment in the company’s history. We are creating three strong, independent champions that will achieve their full growth and value creation potential as independent companies.”
The company also announced that — as part of the creation of three independent entities — adjustments will be made to the composition of the Continental Executive Board. Ariane Reinhart, the Executive Board Member for HR and Sustainability and Director of Labor Relations, will step down from her position on June 30. Ulrike Hintze will succeed her as Director of Labor Relations and Executive Board Member for HR, effective July 1.
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