Continental, the biggest tyre producer domestically, announced it would adjust the production of its Timisoara-based plant in the wake of falling orders from customers such as Automobile Dacia, Ford, GM or VW, which suspended production for limited periods.
The second ranking player, Michelin, announced last week it would halt the production of the tyre plant and the metallic cord plant in Zalau for two weeks in December.
The company early this year estimated it would produce around 13 million tyres in 2008, but due to the current financial crisis the volume of production is being adjusted on a daily basis, depending on orders. " (...) On the car market, the ones setting the trend are our customers and as a result we depend on the order volume. Nevertheless, our partner and client portfolio allows us to minimise the direct impact and negative effects," stated Thierry Wipff, general manager of Continental Timisoara.
The company's representatives did not specify how extensive the operated adjustments are, but added that production would not be halted. In Romania, Continental supplies first equipment tyres for Logan model and sells more than 600,000 tyres on the replacement market. "Overall, including plant equipment and replacement equipment, we're reached a sales volume of around 1.3 million passenger car tyres in Romania," stated Martin Zaloudek, market manager with Continental Romania.
Supplies to Automobile Dacia account for less than 5% in the tyre production of Timisoara-based plant. In the five plants and two engineering centres it owns in Romania, Continental employs more than 6,500 people.
Though the volume of tyres sent to car producers has shrunk in the past two months, Continental shows sales on the replacement market have not been hurt, been even spurred by the massive imports of used cars.
"(...) Moreover, Romanians have started becoming more interested in acquiring winter tyres," said Zaloudek. This has also been felt on the market and, according to Continental estimates, the winter tyre market will hit 800,000 units this season, up 40% year-on-year.
Continental group last year generated 489m-euro turnover and net income worth 14m euros, half the level reported in the previous year.
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