New Conti Distribution Centre Opens in China

The distribution facility in China jointly set up by Continental and the logistics cooperation Penske/Honold has entered operation. On October 1 the Shanghai Regional Distribution Center (RDC) took over from the temporary RDC, opened in March, as the official site for operations. The interim facility will now be closed down.

“For Continental, this [the RDC] represents a logical next step in the development of Asian distribution, Following the large-scale restructuring of logistics in Malaysia, China is the next challenge to be tackled,” stated Carsten Sziegoleit, head of warehousing and tyre distribution worldwide at Continental.

The launching of logistics operations in China is based essentially on the introduction of Continental’s established logistic processes and systems. Lean processes with a minimum of interfaces have already been successfully tested in China, ensuring that the new RDC will get off to a good start. With Penske as partner in China, Continental is relying on a well-established service provider, backed up by the experience of Honold Reifenlogistik, a company specialising in tyres. Honold already serves Continental with over 100,000 square metres of warehousing.

At the Shanghai RDC, Continental will have 6,000 square metres of storage space at its disposal for passenger and truck tyres, and the RDC has the capacity to accommodate up to 80,000 tyres. Annual tyre turnover will amount to around 400,000 units. Penske/Honold has created 25 new jobs for warehouse operations and has specially trained employees to ensure that high standards of quality are met, and Penske will utilise some of its distribution partners’ existing truck fleets to effect deliveries.

The new RDC guarantees distribution of tyres to all of China’s provinces, a step the company is confident will further strengthen Continental AG’s influence in the growing Chinese market.