German auto parts maker Continental AG said Wednesday it plans to more than double investment in its tyre factory in Hefei, China, over the next few years, in a move to expand manufacturing capacity for both passenger car and bicycle tyres.
Continental will invest more than 250 million euros (US$275.5 million) in the Hefei plant, on top of the previous EUR250 million, according to an agreement reached with local governments in late April.
By 2019, the tyre maker plans to boost the site’s annual passenger car tyre production gradually to 14 million from 5 million. Bicycle tyre output is expected to rise to 13 million by 2025 from 2 million, Continental said.
The plant expansion will increase the number of jobs in Hefei to 2,700 from 1,150, said Nikolai Setzer, management board member for the tyres division. It is part of a group-wide plan under which Continental has invested more than EUR2 billion in tyre manufacturing capacities and high-tech projects since 2011, Mr. Setzer said.- Morningstar.com