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Worldwide Downturn in Mining Industry Forces Interruption of the production of conveyor belts atContiTechIMAS S.A.in Volos

  • Fallingcommodity material prices causedmining companies to postpone investments
  • Production of conveyor belts to be stopped on March 11, 2016; number of workers affected is approximately 138
  • Steel cord production by SYRMA S.A. to be continued

Volos,Greece,March 2016. Due to the continuing global economic downturn in the commodity market and particularly the lignite mining industry, ContiTechIMAS S.A. is stopping its local production of conveyor belts in Volos, Greece, with immediate effect.“The mining industry has been experiencingan economic downturn for many months now, due primarily to decreasing demand for its products and depressed prices for itscommodities. This is one of the reasons that in particular the lignite mining sector, cement and steel manufacturersas well as other industrial companies are not investing as much as they did several years ago,” explained HannesFriederichsen, head of the Conveyor Belt Group business unit, adding: “Consequently,ContiTechIMAS S.A. is faced with excess conveyor belt capacity. This was a difficult decision and was not taken lightly, but was unavoidable after months of intensive but unsuccessful negotiations.” Steel cord production of SYRMA S.A. is not affected by this decision.

A review of its manufacturing footprint and production capabilities has led to the decision to stop conveyor belt production at the Volos plant. Approximately 138 employees are affected. Customers will continue to receive a service fromContiTech. The conveyor belts will be delivered with the same quality from other underutilized facilities throughout the company. Domestic customers will be served directly from our other European locations.

ContiTechfounded its conveyor belt plant in Volos, Greece, in 1972,and produces steel cord conveyor belts, fabric belts, pulley lagging,and splicing material for the Greek market and for export.

Continental develops intelligent technologies for transporting people and their goods. As a reliable partner, the international automotive supplier, tire manufacturer, and industrial partner provides sustainable, safe, comfortable, individual, and affordable solutions. Continental through its five divisions Chassis & Safety, Interior, Powertrain, Tires and ContiTech, employs more than 208,000 people in 55 countries.

The ContiTech division is one of the world’s leading suppliers of technical elastomer products and is a specialist in plastics technology. It develops and produces functional parts, components, and systems for machine and plant engineering, mining, the automotive industry, and other important industries. ContiTechdivision currently employs approximately 43,000 people in 44countries worldwide.

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Antje Lewe

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Head of Media & Public Relations

ContiTech AG

Phone: +49 511 938-1304

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Your contact:

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This press release is available in the following languages: English, Greek

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Your contact:

Antje Lewe, phone: +49 511 938-1304

KG Law Firm ref. num.: 3.218.039