Conti in €250m expansion of China tire plant

Hanover, Germany – Continental AG is investing €250 million in new capacity expansions at its Hefei tire plant in China, the German-based group announced on 3 June.

The expansion of the Hefei tire plant, which was opened in 2011, is in-line with an investment agreement with provincial and local authorities in April.

“The agreement envisions gradual ramp-up of the current production capacity of five million car tires a year to 14 million units by 2019,” according to Conti.

Investments are also to be made in the bicycle-tire segment, where production capacity in Hefei is to rise from its current level of two million units to 13 million tires by 2025.

The programme, which is part of the group’s ‘Vision 2025’ strategy, will increase employment at the Hefei plant from 1,150 at present to 2,700, said Nikolai Setzer, head of Continental’s Tire Division.

“To date, Continental has already invested €250 million in the Hefei plant and by the time the agreed investment plans have been realised the total will have surpassed €500 million,” Setzer explained.

Under Vision 2025, Conti aims to deliver annual investments of €350 million in its existing plants, with a further €1 billion earmarked for a ‘special investment programme’:

“In total more than €2 billion is being invested in laying the foundations for long-term growth, particularly in the BRIC states[Brazil, Russia, India and China] and in the US,” the company stated.