A “low three-digit million euro” restructuring program to achieve significant annual savings by 2026
Hannover, Germany – ContiTech AG is undergoing a multimillion-euro restructuring to align the business with the ongoing transformation of the automotive industry.
The restructuring will focus primarily on the company’s automotive fluid management products and will amount to “a low three-digit figure in millions of euros”, Continental AG chief financial officer Katja Durrfeld said during a meeting. a conference call on August 9.
When fully implemented, on a steady-state basis, the annual gross savings will amount to €25 million per year from 2026, she added.
As part of the restructuring, ContiTech will adjust the configuration of all German sites in mobile fluid systems to align with the changing requirements of the automotive and commercial vehicle markets.
As the number of battery-powered electronic vehicles increases, for example, ContiTech will focus on “promising solutions” for pipe components and complex line systems for thermal management.
“We and the Continental Board will continue to analyze and take action to ensure we have the optimal portfolio on board to secure our future performance,” Durrfel added.
In addition, the CFO stated that ContiTech will continue to set up and implement new efficiency programs to strictly control costs.
“As already mentioned, we are proactively managing supply and logistics challenges around the world, securing the supply chain in the automotive sector, given the constraints linked to semiconductors.
“To improve our free cash flow, we are managing our inventory levels by aiming for lower levels while securing the supply of critical components,” she added.