GERMAN automotive firm Continental expects its sales to rise more than 5% in its current fiscal year while its sales last year rose 17% to EUR30.5 billion. Its tyre division had combined sales of EUR8.8 billion from passenger and light truck tyres and commercial vehicle tyres, 7% up on the previous year. The company is
also banking on global demand for replacement car/light truck and commercial vehicle tyres to grow 3% and 4% respectively. Continental’s tyre unit also plans to invest more than US$1.3 billion in the BRIC countries. It
is doubling capacity in Camacari, Brazil, while the construction of a new plant in Kaluga, Russia, commenced in November 2011. In India, following the acquisition of Indian tyre manufacturer Modi Tyres, Continental plans
to invest EUR50 million to establish in-house passenger and light truck tyre production as well as expand truck tyre production. In the US, the construction of a new plant is set to commence in South Carolina
while an existing plant in Illinois is being expanded.
In related news, Rico Auto Industries is now a fully owned subsidiary of Continental that has acquired Rico’s 50% equity in the Indian joint venture Continental Rico Hydraulic Brakes. This acquisition reinforces Continental’s growth plans and investments in both development and manufacturing to introduce future
technologies to both of its automotive and rubber industries in India. (PRA)