Worldwide downturn in mining industry
Worldwide Downturn in Mining Industry Forces Interruption of the production of conveyor belts at Con-tiTech IMAS S.A. in Volos
- Falling commodity material prices caused mining companies to postpone investments
- Production of conveyor belts to be stopped on March 11, 2016; number of workers affect-ed 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, ContiTech IMAS S.A. is stopping its local production of conveyor belts in Volos, Greece, with immediate effect. “The mining industry has been experiencing an economic downturn for many months now, due primarily to decreasing demand for its products and depressed prices for its commodities. This is one of the reasons that in particular the lignite mining sector, cement and steel manufacturers as well as other industrial companies are not investing as much as they did several years ago,” explained Hannes Friederichsen, head of the Conveyor Belt Group business unit, adding: “Consequently, ContiTech IMAS 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 from ContiTech. 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.
ContiTech founded 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.