Sanusi Deflates Spin Over Tyre Plant Closure With Divine Warning

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Continental’s decision to close its tyre manufacturing plant is not related to the state government or political issues, said Kedah Menteri Besar Sanusi Md Nor.
ADSHe dismissed claims that investors are leaving the PAS-led state due to the administration as baseless.
"I hope those spreading these slanders will repent and remember the consequences in the afterlife. These slanders mislead the public. In this modern world, arguments should be countered with arguments, not false narratives.
"Continental has met with me several times before. This closure is a business matter, not because they dislike me or the state government," he was quoted as saying by Berita Harian in Alor Setar.
Sanusi was responding to allegations from a TikTok account that claimed the plant’s closure was due to state policies allegedly causing investors to leave Kedah.
The menteri besar noted that 70 percent of the factory's output was for passenger car tyres, and the decision to relocate to Thailand was believed to be driven by cost considerations and the company’s global operational needs.
"Continental makes tyres for passenger vehicles. Competition from China is very strong in terms of pricing and technology. In fact, the German company is now focusing on high-tech tyres, such as those for racing cars and heavy industries," he said.
He also mentioned that another company has expressed interest in taking over the factory site, but discussions are still ongoing behind closed doors.
Nearly 1k workers may lose job
On Monday, Continental announced that it would discontinue its tyre manufacturing operations at its Alor Setar facility by the end of the year.
It said the plant employs 950 people and the priority is to support them through the transition by offering career counselling and exploring potential job opportunities both within the company and externally.
"The decision to close the Alor Setar tyre plant follows a comprehensive business review to safeguard the company's competitiveness and business performance in the Asia Pacific region.
"Adapting to changing customer demand, the company seeks to optimise its local product portfolio and its manufacturing footprint," it added. - Mkini

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