Agency Report –
German automotive parts manufacturer Continental on Tuesday said it will spin off its materials division, ContiTech, to become a “global company focused on tyres.”
The Hanover-based company said it will make ContiTech independent, months after it announced intentions to spin off its automotive supply division.
In a press release, Continental said it “aims to position the three group sectors – Tyres, ContiTech and Automotive – as strong, independent companies.”
“Over the past 30 years in particular, Continental has used targeted acquisitions and organic growth to build up three strong group sectors in their respective industries. These are now ready for independence,” said chief executive Nikolai Setzer.
The company said a sale of ContiTech to be the most likely option, but that it would first focus on spinning off the automotive division.
Once those transactions go through, only the traditional tyre business is to remain with Continental.
Amid struggles in the global automotive industry. Continental saw consolidated sales shrink by 4.1% to €39.7 billion ($43.4 billion) in 2024, although net income was stable at €1.2 billion.
