Continental to invest over 250 million euros to hike production at China plant
Published On 2015-06-15 18:28:13 878 views
Continental has announced increasing the production capacity of Hefei tyre factory in China. One of the leading automotive and component suppliers in the world, Continental will invest more than 250 million euros at its Chinese manufacturing unit, the company confirmed.
According to Continental, the investment will help increase the passenger car tyre production at the Hefei facility to 14 million a year by 2019. Currently, the plant churns out passenger vehicle tyres at the rate of 5 million a year. In addition to that, the bicycle tyre production will grow to 13 million tyres a year by 2025 from 2 million it currently produces.
The expansion will result in creating more employment opportunities at the site as well. The number of employees will rise from 1,150 to 2,700.
In April 2015, Continental had confirmed to invest 1 billion euros in China over the course of the next five years. The company is expecting its Asian sales to bring about 30 per cent of Continental’s global turnover by 2020. Currently, the Asian market contributes 20 per cent in Continental’s global sales.