Hanover, September 26, 2022. Continental has discovered that the applicable standards for testing processes for industrial hoses at the ContiTech site in Korbach, Germany, were not always complied with. For example, testing was not performed consistently at the specified frequency. Continental has been conducting extended quality audits for all hose types in the ContiTech group sector since February 2022, following internal reports of irregularities in air conditioning lines for automotive applications.
At the present time, there are no indications of any irregularities in the use of industrial hoses by customers. The different hose types were used, for example, as refueling, water and steam lines. The customers come from the mechanical engineering, chemical and beverage industries, among others. In 2021, hose production in Korbach contributed an amount in the mid double-digit million range to consolidated sales in euros.
As a purely precautionary measure, Continental has suspended the sale and delivery of the affected hoses from Korbach until full compliance with the testing processes is ensured. Continental has decided to commission an independent certification company to provide neutral, external assistance. The company has informed the relevant customers and the initial responsible authorities.
By way of precaution, Continental has already started to carry out the additionally initiated reviews throughout the ContiTech group sector. The company will consequently take the necessary measures based on the results of its investigations.
Due to these ongoing internal investigations, no further information can be provided at this time.