Continental Alor Setar tyre plant closure a business decision, no other factors involved – Kedah MB

On April 28, German automotive parts manufacturing firm Continental announced that it would be halting tyre manufacturing operations at its Alor Setar plant by the end of 2025. The closure of the facility, which currently produces passenger car, light truck and motorcycle tyres for the Asia-Pacific market, will affect 950 jobs.

Following that announcement, Kedah MB Datuk Seri Muhammad Sanusi Md Nor said that Continental’s decision to close its Alor Setar plant was a business move and had nothing to do with politics, the New Straits Times reports.

“This is a business manoeuvre. It is a business decision, not because they hate Sanusi. Since when does a tyre manufacturer get involved in politics?” he said in response to a post made on a TikTok channel linking the plant’s closure to him.

“Tyre companies are having a difficult time competing with the price and technology offered by Chinese companies for the passenger car market. That is why Continental is shifting its focus to performance cars and heavy industry vehicles. The company also has a plant in Thailand and decided to consolidate its tyre production there. It has nothing to do with politics,” he said.

Sanusi added that despite the upcoming closure, a new investor has expressed interest in setting up a tyre manufacturing plant in Kedah. However, at the request of the potential investor, he said he could not reveal any details of the plan, due to the sensitive nature of business competition.

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