Continental is setting up a new tyre plant in China with capacity of 4m tyres a year from 2010.

The plant will be located in the city of Hefei, Anhui Province, and will require an investment of EUR150m. Construction is due to start in the middle of 2008.

In a statement, Continental said that required permits still need to be granted by the central government in Beijing.

Continental considered more than 20 possible locations over a period of two years before deciding on Hefei. The site is about 450km west of Shanghai and located between Beijing and southern China.


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