Continental AG will be closing its ContiTech plant in Bowmanville, Ontario, in 2016 after 100 years as a former Goodyear Tire & Rubber Co. plant, local media reports.
ContiTech acquired the plant last year when it purchased Veyance Technologies Inc., which produced conveyor belts for Goodyear.
The ContiTech plant continues to produce conveyor belts for mining, coal and tar sands operations, but has decided to close after being hit by slow downs in demand as the global mining markets struggle.
“The future forecast for many of these minerals and fuels remains as bleak as the current state. With this outlook, we find many of our global conveyor belt plants in a severe over capacity situation today and tomorrow,” said Continental.
The closure will cause 100 employees to lose their jobs and also affect local initiatives, including the Bowmanville Memorial Hospital Foundation and the Support our Troops banners, which the plant has sponsored over the years.
Local media reports that the Clarington Board of Trade will be meeting with Continental managers to discuss their employee’s skills sets next week. The meeting will allow the board to reach out to other businesses in the community about openings that can be filled with a ContiTech plant employee.