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Continental Tire To Close Kentucky Plant

150 jobs will be eliminated by end of Jan. 2007.

FRANKFURT, Germany (AP) – Tire and automotive parts supplier Continental AG said Wednesday that its Continental Tire North America Inc. will close a plant in western Kentucky in six months, eliminating about 150 jobs.

The company said the plant in Mayfield was being closed because of ''declining business conditions'' for passenger and light truck business, plus rising energy and materials costs.

The closure is expected to be complete by the end of January.

''Although we have seen recent improvements in our manufacturing costs and replacement business, we must continue to implement measures to reduce our costs and return CTNA to profitability,'' CTNA President and Continental executive board member Alan Hippe said in a statement.

Continental ceased tire production at the plant in December 2004, laying off 760 people. The remaining jobs are in rubber mixing and warehousing, which are already being done at other plants, Eisenga said.

Continental Tire said it would work with government officials to provide transition assistance to the laid-off employees.