Continental invests in US$90 mn hose plant in Mexico

German technology company Continental has kicked off the year with the announcement of the construction of a new hydraulic hose plant for industrial purposes. The planned investment is of around US$90 million and is one of the biggest investments for Continental’s group sector ContiTech in 2024, it adds.

The construction of the plant is planned to begin in the second half of this year, with a start of operation expected in the second half of 2025.

With a total area of more than 85,000 sq m, this new facility will complement and increase Continental’s existing manufacturing capacities within the region and will generate in its first stage more than 200 jobs.

It will also be ContiTech’s largest location in Mexico, representing approximately the size of 12 soccer fields.

“Strengthening our industry business in the Americas region is a focus for us,” explained Philip Nelles, Member of Continental’s Executive Board for the Group Sector ContiTech. “This investment is our answer to the demand and growth of the hydraulic hose market in the region and underlines our strategic approach to become the innovation leader and full range supplier for hydraulic hoses.”

He also stated that the new plant will allow the firm to further expand its hydraulics business with an extended portfolio of hoses for diverse key industries like agriculture, mining, construction, manufacturing, and energy.

Andreas Gerstenberger, Head of Industrial Solutions Americas, added: “The hydraulic market is the largest hose and fittings market segment in our region. We have been in the hydraulic hose business for over half a century. With our new plant in Mexico, we will double our capacity in this field and address current and new customers in multiple industries, embracing our ‘in the region, for the region’ approach.”

The plant is expected to feature innovative infrastructure including solar panels, process water reuse technologies, SmartFactory tools as well as machinery with high automation and optimal energy utilisation.

Plus, the new plant will be prepared for additional expansion activities in the future.

The new facility will be Continental’s 22nd plant in Mexico and the second in the state of Aguascalientes. Continental’s operations in the country produce and develop automotive components, rubber products and tyres and are exported to different countries, occupying more than 23,000 employees.