Continental Set To Discontinue Alor Setar Tyre Production By Year’s End

Continental announced today that it will cease tyre production efforts at its plant in Alor Setar, Kedah by end of this year.

Leading tyremaker Continental announced earlier today that it will discontinue tyre production operations at its plant located in Alor Setar, Kedah, by the end of this year. Operations at its other plant in Petaling Jaya (PJ), Selangor, appears unaffected, for now.

Continental explained that the decision to discontinue operations at its Alor Setar plant stems from a “comprehensive business review” it recently performed. Concurrently, the firm will optimise its local product portfolio and adapt to changing customer demands.

The plant, established in 1979, has been under Continental's control since May 2012. It has 950 employess and primarily churns out tyres for passenger cars, light trucks and motorcycles that are marketed across Asia-Pacific.

Though the plant was established in Dec 1979, Continental only fully acquired the facility back in May 2012. Today, this manufacturing facility occupies a total space of 133,000 square metres.

According to Continental, the Alor Setar plant produces passenger cars, light trucks and motorcycle tyres, primarily for the Asia-Pacific market. It presently has a workforce of 950 employee too, revealed the firm via a press release issued earlier today.

Despite the plant closure announcement, Continental reaffirmed that Malaysia remains a key market for it in the region across both replacement and original equipment (OE) customers alike.

In the same release, the firm also reiterated its commitment to provide affected employees and this plant with assistance and support. It includes career counseling plus exploring potential employment opportunities both internally and externally.

Additionally, Continental reaffirmed its commitment to Malaysia, outlining it as a key market for the brand in the Asia-Pacific region, which is a “strategic growth” region for the firm, especially for both replacement and original equipment (OE) customers alike

 In lieu of which, the Continental PJ plant mentioned continue to play a central role in the firm's regional production network. Included in which presently are existing plants in Hefei, China; Rayong, Thailand; Modipuram, India; and Kalutara, Sri Lanka.