Continental is to substantially increase tyre production at its Hefei plant in China. The expansion programme envisions a gradual ramp-up of the current production capacity of five million car tyres a year to 14 million units by 2019. “Expansion of the plant forms part of our long-term ‘Vision 2025’ strategy in which, since 2011, we have systematically invested more than €2 billion 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, member of the Executive Board at Continental AG and Head of the Tyre Division.
To date, Continental has already invested €250 million (Rs 1,911 crore) in the Hefei plant and by the time the agreed investment plans have been realized the total will have surpassed €500 million (Rs 3,822 crore).
In the context of Vision 2025, along with the annual investments of some €350 million (Rs 2,675 crore) in its existing plants, Continental has earmarked a further €1 billion (Rs 7,644 crore) for the largest special investment program in the history of the Corporation, so that in total more than €2 billion (Rs 15,288 crore) is being invested in laying the foundations for long-term growth, particularly in the BRIC states (Brazil, Russia, India and China) and in the United States.
