Continental Tire to suspend production in Mayfield, Ky.

Continental Tire North America informed the United Steelworkers Sept. 29 it would move forward with its decision to indefinitely suspend tire production in Mayfield, Ky. Cost-reducing proposals the union made did not go far enough to address the cost disparity between Mayfield and the company’s other tire plants, said Nick Fletcher, vice president of human resources for CTNA. The company announced its plan to suspend production at the Mayfield plant June 29, primarily because of high process costs. CTNA announced a restructuring plan to gradually decrease production at the Mayfield plant in August 2003. In December 2003, the company reduced tire production and laid off approximately 200 employees. CTNA further reduced production in April and laid off another 200 workers. Suspending tire production is the last phase of the restructuring plan, and it will result in the company laying off 700 hourly and 115 salaried employees.