Continental Tyre South Africa (CTSA) will discontinue the production of underground mining and agricultural tyres.
This decision affects about 170 employees within CTSA’s manufacturing and sales organisation.
The decision to review the local Port Elizabeth manufacturing operations was taken as a result of the restructuring of Continental’s global commercial specialty tyre business, says CTSA MD Shaun Uys.
The manufacturing of underground mining and agricultural tyres will now be relocated outside of South Africa.
An outcome in terms of the affected employees has not yet been made and will be handled through a Section 189(A) consultative process, adds Uys.
“All efforts will be made to minimise the impact and to reduce the number of employees affected.
“During the consultation period and any future ramp down, we will maintain key staff in order to complete our customer obligations.”
Uys says CTSA has been part of the South African landscape for more than 70 years.
“We are committed to continuing and growing our business through our Passenger and Light Truck (PLT) divisions.”
The PLT segment is the company’s biggest offering and provides tyres to all car manufacturers in South Africa, while also servicing the replacement market.
“The PLT segment, underpinned by our strong [vehicle manufacturer] fitment, will continue our growth strategy into Africa,” says Uys.
Deputy general secretary at trade union Solidarity, Marius Croucamp, says the CTSA Section 189 notice does not come “as a big surprise”, owing to the local tyre industry being under significant pressure.
“This retrenchment process can be attributed to the continued and persistent decrease and uncertainty in South Africa’s mining sector.”