Germany’s ContiTech has completed its acquisition of Taizhou Fuju Rubber Belt Manufacture, continuing expansion of its drive belt business in China.
The Chinese company, founded in 1993, has predominantly manufactured drive belts for the automotive replacement business and for industry.
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ContiTech will now be able to make use of a 33,000 sq m production complex just completed at the start of this year. It is being mostly fitted out with new machines and offers space for further expansion.
ContiTech will take on about 100 workers at the former Fuju plant located in Sanmen in Zhejiang province, south of Shanghai.
“This acquisition enables us to achieve further above average growth in China,” said ContiTech head Heinz-Gerhard Wente.
“In a very short time frame, we are expanding our production capacities in China and strengthening our drive belt business unit.”
From next spring , ContiTech will make mainly V-belts and V-ribbed belts for the automotive OEM market, the automotive aftermarket, and general industry use.
The new plant is 50km from the ContiTech plant in Ninghai where belts for the automotive sector and for industry in are manufactured.
“The proximity of the two production sites creates synergies,” said Konrad Müller, head of the ContiTech Power Transmission Group business unit, noting another benefit of the acquisition.
“Everything we produce at the new site will likewise be manufactured in strict accordance with ContiTech quality standards. In the future, we will be able to ensure our customers in China faster delivery of a wider range of products.”
The acquisition closed in mid-January.
ContiTech operates more than 10 plants in China and employs around 2,500.
