Continental has announced the start of its new Chongqing plant partnered with Huayu Automotive Systems (HASCO) at a signing ceremony.
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Named as Continental Huayu Brake Systems (Chongqing), the new plant located at Yufu Industrial Park in Chongqing Liangjiang will cover an area of 80,000 sq m and cost CNY600m (US$97.86m) for the first phase. The new plant is expected to start production in autumn 2016 with 600 employees. It will produce automotive brake assemblies, including brake callipers, vacuum boosters and electric parking brakes to serve the development of the west China auto industry.
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Ralf Cramer, president and CEO of Continental China said: “The investment in a new plant in Chongqing is another milestone for Continental in China. It is expected that by 2020 China will reach more than 30m light vehicle production and the West China market represented by the Sichuan-Chongqing region grows fast in the automotive sector. Our goal of ‘localise the value chain’ guides us to meet the market demand with domestic production, and continue to go west with our customers followed by the ‘in the market, for the market’ strategy.”
Matthias Matic, head of Continental’s hydraulic brake systems business unit added: “We pioneered in entering the Chinese market in 1994. In the past 20 years, we have continually strengthened our Chinese business as well as expanded the investment. By doing so, automotive brake technologies such as the electric parking brake have become the mainstream configuration in the Chinese market. Through the new plant in Chongqing, we look forward to offering more advanced and safer hydraulic brake products to support our customers’ business in the west.”
