Continental will focus on the tire business
The Executive Board of Continental has approved the conversion of the ContiTech division, which produces various rubber and plastic products, into an independent company. Previously, a similar decision was made regarding the Automotive division, which produces electronic automotive components, meaning that only the tire business will remain within Continental.
"Over the past 30 years, Continental has created three strong players in their industries through targeted acquisitions and organic growth, and now they are ready for independence," said Nikolai Setzer, CEO of Continental. "In addition, today's rapidly changing markets require high flexibility and decisive action, so the time has come for the most extensive reorganization in Continental's history. We are creating three strong companies that will be able to realize their full potential as independent structures. I will lead the reorganization as CEO until its successful completion, and I am confident that it will be beneficial to all parties."
Not so long ago, it was announced that four ContiTech plants in Germany would be closed, and regarding the future of this division, the company says that various options for independence are currently being analyzed, and the Executive Board will make a decision on this issue at the next stage. At the same time, the most likely option is considered to be the sale of the asset. The process will be launched after the separation of the Automotive business and the sale of the Original Equipment Solutions (OESL) division, which supplies rubber and plastic products to the primary equipment sector. It is expected that ContiTech will leave the Continental structure in 2026.
Continental Automotive has strong positions in the market for automotive displays and sensors, as well as offering brake systems and other automotive components, including for the rapidly growing autonomous transport sector. The company has a staff of around 92,000 people, and sales last year amounted to 19.4 billion euros. Subject to approval at the annual general meeting of shareholders, Automotive's shares will be listed on the Frankfurt Stock Exchange in September 2025.
ContiTech has around 39,000 employees, and its products are mainly sold to the automotive, construction, mining, and other industries. The OESL division has 16,000 employees in 16 countries, and Continental is currently seeking potential buyers for this asset.
Finally, Continental Tires is one of the most successful tire manufacturers in the world. The company's wide range includes tires for different types of vehicles, two-wheeled transport, and special equipment, as well as intelligent solutions and services for vehicle fleets. It is noted that "such trends in the industry as the increasing focus on environmental issues, as well as the electrification and digitalization of transport, open up a wide range of opportunities for further growth." Currently, Continental already offers some of the most environmentally friendly tires on the market and cooperates with 18 of the 20 largest global electric vehicle manufacturers. Last year, the turnover of Continental's tire business amounted to 13.9 billion euros, with a staff of more than 57,000 people.