By mid-2016 ContiTech Conveyor Belt Group is planning to close its plant in Bowmanville, Ontario due to the continuing global economic downturn in mining sectors and particularly in the coal industry, as the company explained. In a statement the Hanover-based company explained that it faced excess conveyor belt capacity throughout the North American region as well as worldwide. A review of its manufacturing footprint and production capabilities had led to the decision to close the plant, said the group.

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This closure will affect 135 employees. “The worldwide mining industry has been in a slump for many months now due to primarily decreasing demand for their products and depressed prices for their commodities.This is one of the reasons that many mining companies are not investing as much as they did five or ten years ago. In addition, there are political and economic uncertainties in regions which are important markets in the mining world”, explained Hannes Friederichsen, head of business unit Conveyor Belt Group. He also added that this year, 71 major mines around the world have been forced to close, with 17 of them closing between July and September alone.

Drive Elements / BeltsDue to a downturn in mining ContiTech company is closing its Canada plant

ContiTech explained that over the next months it would relocate its heavy-weight conveyor belts production, both steel and fabric reinforced, custom mixing and rubber based adhesives from Bowmanville to other ContiTech plants within the region.

At the beginning or 2015 ContiTech acquired the Bowmanville plant as part of its acquisition of Veyance Technologies. “These decisions aren’t taken lightly and are very difficult to make but unfortunately some restructuring is necessary given the current situation,” further shared Friederichsen.

Article source: European Rubber Journal