Following an investment agreement with provincial and local authorities at the end of April, Continental said it would “substantially” increase tyre production at its Hefei plant in China.
The agreement envisions gradual ramp-up of the current production capacity of 5m car tyres a year to 14m 2019. Investments are also to be made in the bicycle tyre segment, where production capacity in Hefei is to rise from its current level of 2m units to 13m by 2025.
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“Expansion of the plant forms part of our long-term ‘Vision 2025’ strategy in which, since 2011, we have systematically invested more than EUR2bn (US$2.25bn) in the establishment and expansion of global production capacities and high-tech projects for tyres. It will increase the number of jobs at the Hefei plant from 1,150 at present to 2,700,” said Nikolai Setzer, head of the tyre division. Continental has si far spent EUR250m on the Hefei plant and planned total spend will pass EUR500m.
Conti want to grow faster than the market in some territories.
It has earmarked a further EUR1bn for its largest special investment programme ever. Over EUR2bn is being spent laying foundations for long term growth, particularly in the BRIC states (Brazil, Russia, India and China) and the US.
Separately, Burkhardt Köller, head of finance, tyre division controller and managing director of Continental Reifen Deutschland, has been named a professor at the University of Science and Technology China in Hefei, specialising in finance, controlling and international management.
