Continental to increase Hefei plant's production capacity by 75 per cent

Published On 06-Jun-2016 21:37:42By TyreDekho Team

Continental to increase Hefei plant's production capacity

Continental AG has decided to increase the annual production capacity of its manufacturing unit in Hefei, China, that was established four years ago. This strategy, according to Nikolai Setzer (member of Continental executive board and head of Conti tyre division), will allow the company to target Original Equipment business in China and fill the demand in the replacement market.

"You have to build over time your replacement market, which we did,” Setzer said. “We have in the area of 4,500 shops carrying our brand [in China]. We needed that time to ramp up the replacement business in accordance with our distribution power."

During Continental's TechShow, Setzer said, "OE manufacturers started showing strong interest for Continental tyres, prompting the need to expand production capacity to fulfill the demand."

Continental revealed that they will be investing approximately $280 million into the facility that is expected to increase the plant capacity by 75 per cent, taking it up to 14 million car and light truck tyres, and increasing the bicycle tyre capacity by 6 times, taking it to 13 million tyres, by 2025. Presently, the plant does not manufacture truck tyres but Setzer said that they are open to the idea of making truck tyres also if the demand justifies the extra investment.

After this expansion, the employment is expected to get doubled to 2,700 from the current 1,150 at the plant. However, the company did not say if the building size would also increase from the current 753,000 square feet. Continental has also made the R&D center operational at its Hefei plant and the Automotive division test center in Jiangsu Province will be operational in the first half of 2016.

The R&D center at the Hefei plant takes up 64,500 square feet area and has a capacity to test 6,000 tyres annually. The center was constructed with an investment of $4.5 million. It will focus mainly on developing and testing summer and winter tyre for Asia/Pacific region.

"The guiding principle behind our growth in the booming Chinese automotive market remains our motto - 'In the market, for the market'," Setzer added. The testing is designed to develop tyres that will reinforce Continental’s market position in the region.

You Might Also Be Interested In

Latest Tyres

  • Car
  • Bike
  • Truck
  • ZVTV A4
    ZVTV A4
    165/80 R14 85Ttubeless
    Rs3,250
    • iconFuel Efficient
    • iconWet Grip
    View Diwali Offers
  • CZAR A/T
    CZAR A/T
    255/65 R18 111HNA
    Rs11,390
    • iconDry Grip
    • iconWet Grip
    • iconHandling
    View Diwali Offers
  • Apterra Cross
    Apterra Cross
    205/65 R16tubeless
    Rs6,100
    • iconFuel Efficient
    • iconWet Grip
    View Diwali Offers
  • AT 20 Grand Trek
    AT 20 Grand Trek
    265/65 R17 110Stubeless
    Rs14,699
    • iconFuel Efficient
    • iconWet Grip
    View Diwali Offers
  • UM 551
    UM 551
    165/80 R14 85Ttubeless
    Rs3,505
    • iconFuel Efficient
    • iconWet Grip
    View Diwali Offers
  • FR500
    FR500
    185/65 R14 86Htubeless
    Rs3,491
    • iconFuel Efficient
    • iconWet Grip
    View Diwali Offers
  • Smart UX Royal
    Smart UX Royal
    215/60 R17tubeless
    Rs8,055
    • iconFuel Efficient
    • iconWet Grip
    View Diwali Offers
  • CINTURATO P1
    CINTURATO P1
    245/40 R17 91Wtubeless
    Rs14,577
    • iconFuel Efficient
    • iconWet Grip
    View Diwali Offers
  • Smart Blaze RYDR BR43
    Smart Blaze RYDR BR43
    140/70-17tubeless
    Rs4,200
    • iconFuel Efficient
    • iconWet Grip
    View Diwali Offers
  • Conta 725
    Conta 725
    90/90 R12tubeless
    Price Coming Soon
    • iconFuel Efficient
    • iconWet Grip
    View Diwali Offers
  • Gripp XL
    Gripp XL
    90/90 R19tubeless
    Rs1,750
    • iconFuel Efficient
    • iconWet Grip
    View Diwali Offers
  • M6303
    M6303
    90/90 R12 54Jtubeless
    Price Coming Soon
    • iconFuel Efficient
    • iconWet Grip
    View Diwali Offers
  • BT SPORTMAXX
    BT SPORTMAXX
    140/70 R17tubeless
    Price Coming Soon
    • iconFuel Efficient
    • iconWet Grip
    View Diwali Offers
  • Feelfree
    Feelfree
    120/70 R15 56H M/Ctubeless
    Price Coming Soon
    • iconFuel Efficient
    • iconWet Grip
    View Diwali Offers
  • Conti Aqua Gripp
    Conti Aqua Gripp
    3.00-18 6PRtube
    Rs1,560
    • iconDry Grip
    • iconWet Grip
    View Diwali Offers
  • Zapper S
    Zapper S
    140/70-14tubeless
    Rs2,625
    • iconFuel Efficient
    • iconWet Grip
    View Diwali Offers
  • Load Power NW
    Load Power NW
    10.00R20NA
    Price Coming Soon
    • iconFuel Efficient
    • iconWet Grip
    View Diwali Offers
  • X INCITY XZUE3+
    X INCITY XZUE3+
    295/80 R22.5na
    Price Coming Soon
    • iconFuel Efficient
    • iconWet Grip
    View Diwali Offers
  • ENDUTMRACE RD
    ENDUTMRACE RD
    315/70 R22.5na
    Price Coming Soon
    • iconFuel Efficient
    • iconWet Grip
    View Diwali Offers
  • JET XTRA
    JET XTRA
    8.25-16na
    Price Coming Soon
    • iconFuel Efficient
    • iconWet Grip
    View Diwali Offers
  • STEEL MUSCLE-S3P4
    STEEL MUSCLE-S3P4
    10.00 R20tube
    Price Coming Soon
    • iconFuel Efficient
    • iconWet Grip
    View Diwali Offers
  • Mile XL X3 R
    Mile XL X3 R
    295/95 D20na
    Price Coming Soon
    • iconFuel Efficient
    • iconWet Grip
    View Diwali Offers
  • TG 01
    TG 01
    10 R 20tube
    Rs43,000
    • iconFuel Efficient
    • iconWet Grip
    View Diwali Offers
  • AGB 21
    AGB 21
    295/80 R 22.5tubeless
    Rs36,000
    • iconFuel Efficient
    • iconWet Grip
    View Diwali Offers

Best Tyres

  • Car
  • Bike
  • Truck
  • SecuraDrive
    SecuraDrive
    205/60 R16tubeless
    Rs6,475
    • iconFuel Efficient
    • iconWet Grip
    View Diwali Offers
  • ZLX
    ZLX
    155/65 R14tubeless
    Rs3,135
    • iconWet Grip
    • iconDry Grip
    View Diwali Offers
  • Milaze
    Milaze
    145 R12tubeless
    Rs1,976
    • iconFuel Efficient
    • iconWet Grip
    View Diwali Offers
  • Vectra
    Vectra
    175/65 R14 82Ttubeless
    Rs3,149
    • iconWet Grip
    • iconDry Grip
    • iconHandling
    • iconLow noise
    View Diwali Offers
  • Fuel Smarrt
    Fuel Smarrt
    165/80 R14 85Ttubeless
    Rs3,505
    • iconFuel efficient
    • iconDry Grip
    View Diwali Offers
  • Taximax
    Taximax
    175/65 R14tubeless
    Rs3,970
    • iconFuel Efficient
    • iconWet Grip
    View Diwali Offers
  • ZVTV
    ZVTV
    185/65 R15 88Ttubeless
    Rs4,299
    • iconWet Grip
    • iconDry Grip
    View Diwali Offers
  • Alnac
    Alnac
    195/65 R15 91Htubeless
    Price Coming Soon
    • iconWet Grip
    • iconDry Grip
    • iconHandling
    • iconLow noise
    View Diwali Offers
  • MILAZE
    MILAZE
    2.50/R16 41Ltube
    Rs875
    • iconLow noise
    • iconDry Grip
    • iconWet Grip
    View Diwali Offers
  • SECURA ZOOM F
    SECURA ZOOM F
    90/90 R17 49Ptubeless
    Rs1,610
    • iconFuel Efficient
    • iconWet Grip
    View Diwali Offers
  • GRIPP
    GRIPP
    100/90 R18 56Ptube
    Rs2,040
    • iconFuel Efficient
    • iconWet Grip
    View Diwali Offers
  • Nylogrip Plus
    Nylogrip Plus
    80/100-18tubeless
    Rs1,420
    • iconFuel Efficient
    • iconWet Grip
    View Diwali Offers
  • PILOT SPORTY
    PILOT SPORTY
    2.75/R17 41P 4PRtube
    Rs1,650
    • iconFuel Efficient
    • iconWet Grip
    View Diwali Offers
  • Zoom XL F
    Zoom XL F
    110/70 R17 54Htubeless
    Rs1,775
    • iconFuel Efficient
    • iconWet Grip
    View Diwali Offers
  • MoGrip Meteor M
    MoGrip Meteor M
    120/90-17 64Htube
    Rs3,500
    • iconFuel Efficient
    • iconWet Grip
    View Diwali Offers
  • Nylogrip Ezeeride
    Nylogrip Ezeeride
    80/100-18tubeless
    Rs1,570
    • iconFuel Efficient
    • iconWet Grip
    View Diwali Offers
  • WINMILE D
    WINMILE D
    11.00 R20na
    Rs15,000
    • iconFuel Efficient
    • iconWet Grip
    View Diwali Offers
  • FM Super
    FM Super
    10.00-20/16na
    Price Coming Soon
    • iconFuel Efficient
    • iconWet Grip
    View Diwali Offers
  • MUSCLEROK
    MUSCLEROK
    10.00-20tube
    Price Coming Soon
    • iconFuel Efficient
    • iconWet Grip
    View Diwali Offers
  • HCL Super
    HCL Super
    12.00-20/18na
    Price Coming Soon
    • iconFuel Efficient
    • iconWet Grip
    View Diwali Offers
  • Lug Plus
    Lug Plus
    10.00-20/16na
    Price Coming Soon
    • iconFuel Efficient
    • iconWet Grip
    View Diwali Offers
  • Mile XL Rib Pro
    Mile XL Rib Pro
    8.25-20/16Pna
    Price Coming Soon
    • iconFuel Efficient
    • iconWet Grip
    View Diwali Offers
  • Lug XL Pro
    Lug XL Pro
    8.25-20/16na
    Price Coming Soon
    • iconFuel Efficient
    • iconWet Grip
    View Diwali Offers
  • THE LUG-PLUS
    THE LUG-PLUS
    10.00-20tube
    Price Coming Soon
    • iconFuel Efficient
    • iconWet Grip
    View Diwali Offers
×
Which is your city ?