Continental Alor Setar Tyre Plant Closure Not Driven By Politics - Kedah MB

Leading tyre manufacturer Continental has recently announced its decision to discontinue tyre manufacturing operations at its Alor Setar, Kedah facility by year's end. Currently, operations at its Petaling Jaya, Selangor production site remain unaffected.

The closure of the facility, which now manufactures passenger car, light truck and motorcycle tyres for the Asia-Pacific region, will affect 950 employment.

Following the announcement, Kedah MB Datuk Seri Muhammad Sanusi Md Nor clarified that the closure of Continental's Alor Setar facility was a purely business-driven decision, dismissing a TikTok post that had linked the shutdown to political motives related to him.

“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

“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 says in a NST report.

Additionally, Sanusi disclosed that a new investor has shown interest in establishing a tyre manufacturing facility in Kedah. The Kedah MB, however, stated that due to competitive business sensitivities and at the request of the prospective investor, further details could not be revealed at this stage.

Established in 1979 and fully acquired by Continental in May 2012, the 133,000-square-meter tyre factory in Alor Setar, Kedah, caters to both replacement and original equipment markets.


Despite the year-end facility closure impacting employees, the company emphasizes its commitment to assisting them in their job search. This includes providing career guidance and actively identifying potential positions both internally and externally.