Continental AG plans sale of U.S. tire factory

HANNOVER, Germany, Jan 17, 2005; Reuters reported that car parts group and tyremaker Continental AG plans to sell a tyre factory in the U.S. state of Ohio as part of its campaign to focus on core businesses, a company spokesman said on Monday.

Talks are under way on selling the Bryan plant, which employs nearly 300 staff and makes special tyres for heavy trucks used in quarries and pits, the spokesman said without elaborating.

Continental last year halted tyre production at a U.S. plant in Mayfield, Kentucky, but has forecast a higher 2004 operating profit despite the associated restructuring charges.

The world's fourth-biggest tyremaker also expects to boost operating profits in 2005.