Continental A.G. has opened a research and development center for tires at its Hefei tire plant and has broken ground in Jiangsu Province on a test center for the automotive division, with operations due to start in about one year’s time.
The center at the Hefei plant, built on an area of around 64,500 square feet, maintains capacity to machine-test 6,000 tires a year and represents an investment of about $4.8 million. The facility will focus on developing and testing summer and winter tires for the Asia/Pacific (APAC) market.
Plans for a second phase are already being drawn up to generate capacity for an additional 1,000 tires to be tested, Conti said.
Nikolai Setzer, head of the tire division and member of the Continental AG executive board, said the facility is part of Conti’s “Vision 2025” growth program that targets a better global balance of R&D, production and sales activities.
Conti also is completing a $215 million, three-year capacity expansion at the Hefei car and light truck tire plant. Conti commissioned the plant in May 2011 after a $260 million investment over three years.
“The guiding principle behind our growth in the booming Chinese automotive market remains our motto, ‘In the market, for the market’,” Mr. Setzer added. The testing is designed to develop tires that will reinforce Conti’s market position in the region.
The facilities include a drum test bench, custom-built for year-round testing of winter tires for the Chinese market.
As a result of this investment, the German tire-maker noted, Continental will be able to develop new generations of summer and winter tires for the Chinese market much faster and more efficiently.
“Our R&D Center in Hefei will help us forge even closer links with our customers in both the replacement and original equipment sectors,” said Philipp von Hirschheydt, executive vice president, passenger car replacement tires APAC, “opening the door to long-term relationships with new customers in the region.
“We will also be working closely with other labs in the region and are aiming to further expand our facilities in the next few years.”
Catherine Herchenroder, director R&D replacement passenger car and van tires APAC, added: “We want to be able to offer our customers in the Chinese market fuel-efficient products with a long service life. Given the boundary conditions of a robust market, our development programme will also feature smart robustness solutions.”
The new automotive test center, Yancheng, Jiangsu, will provide Conti with access to test tracks on which the latest high-speed tire and brake system technologies can be trialled. Conti is building a 27,000-sq.-ft. office/workshops complex there as well.
These investments are considered part of Conti’s plans to invest up to $1 billion in China in the coming five years, essentially matching the firm’s investment there in the past five years, Conti Chairman Elmar Degenhart said during the recent Auto Shanghai 2015. – Tirebusiness.com