(WSPA) – Officials with Continental announced in a news release that a supervisory board has approved the closure of one of their plants in Western North Carolina.
According to a news release issued Wednesday, the plant, which currently employs approximately 650 employees in Henderson County, produces hydraulic brake systems.
“The plant has been unable to acquire new customer projects in recent years,” according to the company news release.
Mary Arraf, with Continental Corporation, said in an email to 7 News that the plant would remain open and operational until the fourth quarter of 2022.
“Continental today announced that due to adverse market conditions and a decline in production volume, the company is taking steps to optimize its manufacturing footprint worldwide,” Arraf said. “As a result, Continental has decided to begin the process of closing its Henderson automotive facility located in Henderson County. The Henderson plant is a Hydraulic Brake Systems location that mainly produces conventional brake calipers and electric parking brakes. It will remain open and operational until the fourth quarter of 2022.
The closure of the Henderson County plant was one of multiple locations reviewed for structural adjustments by the executive board and supervisory board.
“Our structural program is designed to have a rapid impact, so that we can successfully head into the future of healthy mobility at full speed,” Continental CEO Elmar Degenhart said in the company news release. “Like our industries, we need to adapt extremely quickly. The program will require our full concentration and its decisive implementation will push us to the limit and sometimes even beyond.”
“We are determined to protect our affected employees as much as possible and offer them prospects for the future. For our structural transformation, we will take advantage of natural fluctuation and demographic change in the coming years. We will also take additional measures to ensure and enhance the employability of our staff,” Degenhart said.
Brittany Brady with Henderson County Partnership for Economic Development said the global restructuring impacts several plants around the world.
Brady said the operations may transition production to Mexico.