Continental Shuts Down Alor Setar Tyre Factory After 46-Year Run
The Alor Setar facility began operations in 1979 and currently has a total of 950 employees.
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German automotive parts manufacturer Continental AG, commonly known as Continental, is one of the largest tyre manufacturers in the world. The company also specialises in brake systems, vehicle electronics, automotive safety, powertrain, chassis components, and other parts for the for the automotive and transportation industries.
Founded in 1871, Continental tyres were available in Malaysia through importers and distributors as early as the 1960s and 1970s. The company mainly served the premium passenger car and commercial vehicle markets.
Continental establishes foothold in Malaysia and SEA
In the early 2000s, Continental began investing more directly in Southeast Asia, including Malaysia, as part of its strategy to tap into the growing automotive market in the region.
A major milestone came in 2006, when Continental acquired a majority share in Sime Tyres International (M) Sdn Bhd, which was a part of Sime Darby Berhad. Sime Tyres had strong local manufacturing and distribution networks, and the acquisition gave Continental a major manufacturing base and market access in Malaysia.
Following the acquisiton, Sime Tyres was rebranded as Continental Tyre Malaysia Sdn Bhd. This transition allowed Continental to not only sell tyres under its global brands (Continental, General Tire, Barum etc.), but also to modernise and expand its manufacturing footprint in Malaysia.
The company operates tyre manufacturing plants in Petaling Jaya and Alor Setar, producing a wide range of tyres for passenger cars, light trucks, and commercial vehicles, both for the domestic market and export across Asia-Pacific.
Alor Setar tyre plant to shut down by end of 2025
The tyre factory in Alor Setar, Kedah, began operations in 1979 and has been a wholly-owned subsidiary of Continental since May 2012.
It covers an area of about 133,000 square meters and serves replacement customers and original equipment customers alike.
The Alor Setar facility has a total of 950 employees, all of which will be affected by the plant’s closure at the end of the year.
According to Malay Mail, the company said in a statement that its priority was to support these employees by offering assistance such as career counselling and exploring job opportunities both within and outside of Continental.
Continental is now left with only one manufacturing facility in Petaling Jaya. This facility, which currently employs 500 staff, produces off-road tyres for material handling and agricultural use.
The company’s decision to close the Alor Setar plant follows a full business review, as it bids to stay competitive in the Asia-Pacific region. The move is part of efforts to adjust to changing customer demand and improve its product range and factory locations.
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