Closure of Continental plant not Kedah govt's fault, says Sanusi
Kedah menteri besar Sanusi Nor said another company had already expressed interest in taking over the Continental factory's site. (Continental pic)
PETALING JAYA : German auto supplier Continental's decision to shutter operations of its plant in Alor Setar, Kedah, is not the fault of the state government, says menteri besar Sanusi Nor.
Sanusi said Continental's move was a business decision, adding that he had met the company's representatives several times prior to this, Harian Metro reported.
'The closure is a business matter. It's not because they hate me or the state government,' he was quoted as saying.
The Kedah menteri besar also said Continental was relocating the factory to Thailand, and that he believed this was due to lower costs and the international firm's operational needs.
Sanusi was responding to postings circulating on social media claiming that Continental was leaving Kedah because the state government's policies were allegedly unfriendly to foreign investors.
On Monday, Continental announced it would shut down its tyre manufacturing plant in Alor Setar at the end of the year after 46 years of operating there. It currently has 950 workers.
The company said this followed an extensive business review on the company's competitiveness and overall performance in Asia-Pacific.
Sanusi maintained that the state government was only responsible for providing infrastructure like land and facilities, while manufacturing industry policies were set by Putrajaya.
He also said another company had already expressed interest in taking over the Continental factory's site.
'They asked for this matter to be kept a secret first because of tough competition with others,' he added.
Separately, state industry and investment executive councillor Haim Hilman Abdullah said the Kedah government would help the 950 Continental employees who are set to lose their jobs at the end of the year.
Haim said the Kedah Talent Development Centre would help match them with job opportunities in other firms, adding that there is another tyre firm similar to Continental that would be investing in Padang Terap.
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