ContiTech buys out Chinese transmission products partner

ERJ staff report (DS)

Ninghai, China -- ContiTech AG has fully taken over its ContiTech-Jiebao Power Transmission Systems Ltd. joint venture and intends to expand capacity at its the manufacturing location in Ninghai, China. The name has also been changed to ContiTech Power Transmission (Ninghai) Ltd.

Previously, ContiTech held 60 percent of the joint venture and the Ningbo Jiebao Group 40 percent. “We see great potential in the Chinese market and are aiming for a clear structure there. The full takeover of the joint venture has taken us a step further towards that aim”, explains Karin Seid, head of commercial operations at the ContiTech Power Transmission Group. “This will enable us to play a stronger role in China, especially in the automotive original equipment business.”

Around 700,000 automotive and 200,000 industrial belts are produced each year in Ninghai. Currently there are 120 employees and the takeover is certain to mean new posts being created as the location's sales are to increase significantly in the coming years. Approximately 100 people are employed in Shanghai; the sales team will remain there even when production moves.

The joint venture with the Ningbo Jiebao Group started in 1999 with the aim of establishing a local production facility. In 2002, the location was expanded further and production of belts for industrial, non-automotive applications started. “As our second Chinese location in Shanghai could not be expanded - for logistical reasons - and designed efficiently in line with future customer requirements, the logical step was for us to strengthen the Ninghai location and to relocate the production activities to there from Shanghai by next year”, emphasises Seid.

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Press release from ContiTech