German auto supplier Continental announced Tuesday that it plans to spin off its ContiTech materials business — one of several moves to narrow its focus to vehicle tires in recent months.
The company said that the “preparatory phase” of the ContiTech shift would assess potential transaction structures and timetables, although officials consider a sale to be “the most likely option.” Any sale or separation would take place after the previously announced spinoff of Continental’s automotive segment and the sale of ContiTech’s automotive rubber business — potentially in 2026, officials said.
ContiTech would be an independent materials solutions specialist with “a strong industrial focus,” the company said, as Continental focuses on its flagship tire operations.
“Today’s highly dynamic markets also call for focused, agile and decisive action,” Continental CEO Nikolai Setzer said in a statement. “Now is therefore the right time to initiate the most far-reaching realignment in the company’s history.”
