USW says Mayfield Closure Not a Surprise; More Proof of Continental's Strategy to Abandon North America

PITTSBURGH--Aug. 3, 2006--The United Steelworkers (USW) said today that Continental Tires North America's (CTNA) announcement that it was shutting down its remaining operations at its Mayfield, Kentucky plant was not totally unexpected.

"It was obvious to us long ago that Continental decided to abandon U.S. production," said USW executive vice president Ron Hoover. "Their business strategies and management teams never addressed the dynamics of this market and unlike other successful companies, they refused to develop a collaborative relationship with us."

The Mayfield plant once employed 2,400 workers when it was owned by GenCorp. Operations in General Tire's U.S. plants have gone steadily downhill since Continental AG of Germany acquired the facilities nearly 20 years ago. In December 2004, CTNA announced an indefinite suspension of tire production in Mayfield. The latest layoffs are expected to begin around October 1, 2006, with the goal of discontinuing remaining operations around February 1, 2007. The final 107 workers at Mayfield will be permanently laid off.

"Conti never demonstrated any sense of dedication to its workers or the community here," said USW Local 665 president Terry Beane. "The only surprise today is that the company is finally acknowledging its intent to close our plant."

Beane said that he plans to meet with Conti representatives as soon as possible to conduct effects bargaining as a result of the announced closing.

"Conti always thought it could be profitable by focusing almost exclusively on providing original equipment for American car manufacturers," said Hoover. "That strategy never worked and I don't see how it will improve when they try to push Mexican and Brazilian product down the same pipeline."

The USW represents 850,000 hourly workers in the U.S. and Canada. Some 70,000 are employed in the tire, rubber and plastics industry.