Conti Opens China Automotive Components Plant

According to Jay Kunkel, president of Continental’s Asia region, the German tyre and automotive component supplier intends to have sales within Asia account for 25 per cent of the company’s global total by 2013. Growth in the key market of China and throughout the region is already occurring and in response the company has established a new facility for the production of electronic brake and powertrain systems and interior electronics products.

In introducing the Shanghai based production plant, which entered operation in September, Continental explains that it services its three automotive divisions – Chassis & Safety, Powertrain and Interior – and manufactures a wide range of products, including electronic brake systems and hydraulic electronic control units, body electronic modules and instrumentation components and thick film substrates. Located near the Continental Automotive Jiading Tech Center and Continental Asia Headquarters, the facility is operated by Continental Automotive Systems (Shanghai) Co. Ltd. and was established as part of a joint-venture project.

 This plant, says Continental, is part of the company’s investment to “grow significantly” in China and further solidifies the firm’s commitment to and resolution in the Chinese market, expanding its strong footprint in China and Asia. The German company is collaborating with its partner, the Jiading Industrial Zone (JDIZ), to invest up to RMB160 million (£15.2 million) in this new plant, which is situated on a 74,000 square metre site. Total floor space amounts to around 20,000 square metres. Currently, more than 800 employees are working at the new plant, and the number is expected to reach 1,500 by 2015.

 “Due to our robust business growth driven by macroeconomic factors, as well as auto industry policies in China, I am very excited to announce the establishment of our new plant in Jiading,” stated Kunkel. “It will further enhance our production capacity to better serve the demands from our customers in China and around the globe. The production operation of this plant will considerably contribute to the automotive industry in China, the world’s fastest growing automobile market, and hence positively benefit our plan to make 25 per cent of Continental global sales in Asia by 2013. Continental is devoted to providing local vehicle manufacturers with cost-effective, advanced and tailored technology solutions in order to support the development of the automotive industry in China.”