ContiTech plans expansion in China

ERJ staff report (R&PN)

Northeim, Germany - ContiTech AG barely completed its acquisition of Tianjin Xinbinhai Conveyor Belt Co. Ltd. May 30 before it began making plans to further expand the purchased firm's factory.

Situated in the port city of Tianjin, China, about 75 miles southeast of Beijing, Tianjin Xinbinhai's plant primarily produces conveyor belts for metal and cement processing and mining, as well as belts for power plants, automotive and port operations. It has a work force of about 150.

Financial details weren't disclosed.

“This move gives us a new market in an up-and-coming region and strengthens ContiTech's position in China,” according to Hans-Jurgen Duensing, general manager of the ContiTech Conveyor Belt Group.

He said the Northeim-headquartered company manufactures conveyor belts for industrial applications at several locations worldwide. “Now we can supply the Chinese market with products made right in the country.”

With the acquisition complete, Duensing said, “we are set to further expand the plant.”

That project, however, has not been finalised, a ContiTech spokesman said. “The planning has just started, and first we have to optimise the plant.”

Details on the expansion are expected within the next several months.

ContiTech wants to expand the facility because the market for conveyor belts in China is strong and growing quickly, the primary reason the firm needed a factory in the country in the first place, the spokesman said. “Belts are very weighty and expensive to ship.”

About 90 percent of the conveyor belts produced at the Tianjin facility will be earmarked for the Chinese market, he said, and the remaining 10 percent sent to the rest of Asia.

ContiTech operates one other belting factory in China, Shanxi Phoenix Conveyor Belt Co. Ltd., based in Changzhi. That site employs about 350.

The company has been active in China for 30 years. It operates nine plants and employs about 2,100 in the country.

ContiTech manufactures vibration components, hose line systems, air springs, surface materials, conveyor belts, drive belts and coated fabrics at the China facilities.

Its growing Chinese manufacturing hub serves automotive makers, machine and plant engineering, construction, mining, the print industry and rail transportation, the company said.

From Rubber & Plastics News (A Crain publication)