Continental to build tyre plant in Russia
Continental is planning to invest EUR220m to build a new tyre plant in Kaluga, Russia, as a part of its goal to achieve profitable growth in the emerging markets.
Over the next four years the company is also planning to invest a total of EUR1bn in order to expand passenger tyre capacity.
The construction of the new plant is expected to start by the end of 2011 and the production is scheduled to commence at the end of 2013.
Once fully operational the new plant will have an annual output of about four million tyres and approximately 400 people are expected to be hired before the end of 2013.
The company will primarily produce summer and winter tyres at the new plant under the Continental, Gislaved, Barum and Matador names which are the key corporate brands for the Russian market.
Continental head of the passenger and light truck tires division Nikolai Setzer said aspects like its good infrastructure, central geographical location and the good experience the company has already had with the existing automotive electronics plant were among the special advantages of the new site in Kaluga.
"Indeed, our plans for Kaluga are such that we shall be able to expand the plant's annual capacity to eight million passenger tyres when the time comes," Setzer said.
Through its local production in Russia, the passenger and light truck tires division will benefit from the removal of import duties and from reduced transportation costs, thus making it much more competitive all round.
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