German tyre and car parts maker Continental AG plans to expand its Czech-based activities by opening a new €74 million plant for special high-speed tyres, a Czech state agency said on Thursday, according to Reuters.

CzechInvest, the state agency for support of foreign direct investments, reportedly said in a statement that the German company expects to produce three million tyres per year in the eastern Moravian town of Otrokovice.

According to Reuters, the bulk of production will be purchased by Volkswagen, DaimlerChrysler, BMW, General Motors and Ford.