Business

Continental to Close Alor Setar Tyre Plant by 2025 Amid Regional Restructuring

Published:
May 2, 2025 10:21 AM
Author:
James Lockwood

Continental has announced it will cease operations at its tyre manufacturing plant in Alor Setar, Malaysia, by the end of 2025. The closure is part of a wider strategic move to streamline its manufacturing footprint and adapt to evolving market dynamics across the Asia-Pacific region.

950 Jobs Impacted by Plant Closure

The Alor Setar plant, operational since 1979, currently employs around 950 people and manufactures tyres for passenger cars, light trucks, and motorcycles. Production has primarily served customers across the Asia-Pacific market.

As part of its restructuring, Continental will consolidate its tyre production in Malaysia at its Petaling Jaya site, which will continue operations focused on off-road tyre manufacturing.

Strategic Focus Shift to Petaling Jaya

The decision follows an internal review aimed at aligning product offerings and plant operations with shifting customer demand and regional competitiveness. According to Continental, maintaining a flexible and efficient production network is key to meeting future challenges in the tyre sector.

Support for Affected Workers

Continental has committed to a transition programme for impacted employees. Over the next eight months, the company will offer:
▪ Career counselling
▪ Skills training to enhance employability
▪ Job-matching support within Continental and with external companies

In addition, the Kedah state government is actively collaborating to connect affected workers with alternative employment in the region.

Tagged with: Continental, tyre plant closure, Malaysia tyre manufacturing, Alor Setar, Petaling Jaya, Asia-Pacific tyre market, off-road tyres, tyre industry restructuring

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