ContiTech to build €82m hydraulic hose plant in Mexico

Hanover, Germany – ContiTech AG, part of the German technology group Continental AG, is investing $90 million (€82 million) to establish an hydraulic hose production facility in Mexico.

To be built in the west-central state of Aguascalientes, the facility will initially create more than 200 jobs, said ContiTech's 26 Jan announcement.

Construction work is scheduled to start in the second half of this year, with the unit set for operation in the second half of 2025.

The facility will “complement and increase” Continental’s existing manufacturing capacities within the region, said the statement.

The plant will span a total area of more than 85,000 square metres, making it ContiTech’s “largest location in Mexico.”

“Strengthening our industry business in the Americas region is a focus for us,” explained Philip Nelles, head of ContiTech.

The investment, he added, is in response to “demand and growth of the hydraulic hose market in the region”.

Furthermore, the new facility will enable innovation and help ContiTech become a “full range supplier for hydraulic hoses”.

The project extends ContiTech's portfolio of hoses for key industries such as agriculture, mining, construction, manufacturing, and energy, Nelles said.

According to ContiTech USA CEO Andreas Gerstenberger, the hydraulic market is “the largest hose & fittings market segment” in the region.

“With our new plant in Mexico, we will double our capacity in this field and address current and new customers [requirements] in multiple industries,” he added.

Environmental features will include solar panels and water-reuse facilities and high levels of automation to support "optimal energy utilisation.”

Furthermore, the site has scope for additional expansion activities in the future, Gerstenberger noted.