Global technology company and tyre manufacturer Continental AG has opened the third phase expansion of its Hefei tyre plant in China, the company’s first plant in the country. This expansion will further strengthen Continental’s presence in the Asia Pacific and Chinese markets.
With a total investment of around EUR250 million, the Hefei tyre plant Phase III expansion will enable Continental Tires to boost its annual production capacity from currently about 8 million to 14 million tyres by 2019.After the expansion, the Hefei plant will employ about 2,700 employees which is nearly twice as much as the current status of about 1,400 employees.
“Hefei Plant Phase III expansion takes us a step closer to our long-term ‘Vision 2025’ strategy and will see us further improve the balance of our global manufacturing footprint,” said Nikolai Setzer, Member of the Executive Board of Continental Corporation and Head of the Tire Division. “We regard the Asia Pacific region, especially the China market, as the company’s main growth engine for the upcoming years. This large-scale expansion once again represents our confidence and commitment to the China market.”
Since 2011, Continental Tires has been systematically ramping up the production capacity in the Hefei tyre plant, which amounted to a total investment of about EUR570 million. As part of its strong commitment to the China market, Continental Tires also launched a Research and Development Test Center in 2015 as well as its first training center in the APAC region in 2016 in Hefei with the ultimate goal to enhance its local competency, laying a solid foundation for the company’s ambitious growth plan in the Asia Pacific region.
Philipp von Hirschheydt, Executive Vice President Passenger and Light Truck Replacement Tires APAC, added that the expansion will enable the company to meet the growing demand for tyres in the country.
Continental Tires Hefei Plant was officially opened in 2011 with a total land area of 340,000 square meters. The plant mainly produces replacement and original equipment passenger car tyres for the mid- to high-end Chinese market.
Since its establishment, Hefei plant has been widely recognised as a green plant devoting to environment protection and local community development. For example, the production roof is covered with 70,000 sq m solar power panels which provide 5.5 million-kWh green electricity each year. Its zero-waste water and emission control also is a benchmark in the industry to protect the environment. Besides environment protection, Continental Tires is promoting cycling safety and driving safety among children and young drivers, and supports educational projects in the local community.