Continental Tyre South Africa (CTSA) has announced the discontinuation of the production of underground mining and agricultural tyres in South Africa.
This decision affects approximately 170 employees within its manufacturing and sales organisation.
The decision was made to review the local Port Elizabeth manufacturing operations as a result of the restructuring of the global Commercial Specialty Tyre Business.
This critical evaluation has resulted in the principal decision to close the production and to relocate this outside of South Africa.
An outcome in terms of the affected employees has not yet been made and will be dealt with through the Section 189(A) consultative process.
The company will be consulting extensively with all the staff and employee representatives. The affected employees were informed of the situation and how it could impact them on 7 June.
Employees were advised of the reasons, timescales as well as the next steps.
Managing Director of CTSA Shaun Uys says all efforts will be made to minimise the impact and to reduce the number of employees affected.
He says they will maintain key staff in order to complete customer obligations.
Uys further added that they are committed to continuing and growing their business through our Passenger and Light Truck divisions (PLT).
The PLT segment is by far the company's biggest offering and provides tyres to all car manufacturers in South Africa as well as servicing the replacement market.
Uys says the PLT segment will continue their growth strategy into Africa and as a part of this, they will continue to source locally from the Port Elizabeth plant.