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.