EMCC European Monitoring Centre on Change

ContiTech Magyarország

Company/Organisation:
ContiTech Magyarország

Geographic Location

Country: Hungary
Region: Szabolcs-Szatmar-Bereg; Eszak-Alfold; Alfod es Eszak
Location of affected unit(s): Nyíregyháza

Company

Sector: Manufacturing
Manufacture of machinery and equipment n.e.c.
28.12 - Manufacture of fluid power equipment
Number Employed: 477
Group: Continental AG

Employment Effects

Announcement Date: 23-04-2020
Planned Job Reductions min: 127
Type of Restructuring: Internal restructuring
Employment Effect Start: 27-04-2020
Foreseen End Date: 31-12-2020

Additional Information

ContiTech Magyarország, a Hungarian subsidiary of ContiTech - a division of German automotive parts manufacturer Continental, will make 127 workers redundant at its Nyíregyháza plant by the end of 2020. Some 109 of the affected workers have employee status, while the rest have another type of work contract.

According to the company, the layoff is unrelated to the coronavirus crisis, it is motivated by declining demand for cooling and heating systems, a trend that is expected to be reinforced by the growing market share of electric vehicles. Hence, this product line is no longer able to operate with profit, despite high-quality work performance. The production of cooling and heating systems will be phased out completely by September 2020. Some production will be transferred to other Continental sites in Eastern Europe, but mostly to another Hungarian plant in Makó.

The more important product lines of the Nyíregyháza plant – air springs and rubber compounds – remain stable and profitable.

The management will consult with every affected worker and give each support in their job search. In addition to the redundancy payments, the payment of extra bonuses is also possible for some laid-off workers. Furthermore, the firm will try to find employment opportunities at other Continental plants – in or outside Hungary – for interested workers.

Recently, ConiTech dismissed another 200 workers from other Hungarian plants

Sources: