Conti building US plant in South Carolina; work to start mid-2012
The county of Sumter, South Carolina has been named as the location for Continental’s planned US passenger car and light commercial vehicle tyre facility. Construction work on Conti’s first own greenfield project in the US will get underway there in mid-2012, and Conti anticipates a 2013 completion date. When first phase production targets are fully reached in 2017, an annual capacity of nearly five million tyres is expected. A second phase project should lift capacity by a further three million units per year by 2021. Continental reports the project’s initial phase involves an investment of more than US$500 million and the creation of more than 1,600 jobs.
“This important announcement is part of Continental’s growth strategy worldwide and in this case especially for the Americas’ market,” said Nikolai Setzer, member of Continental’s Executive Board and head of Continental’s tyre division. “Increasing demand for Continental and General brand passenger and light truck tyres in the USA, as well as the improved business results for Continental Tire the Americas (CTA), has made this significant investment possible. On behalf of Continental, I would like to offer our sincere thanks to Governor Haley, the state of South Carolina, the Port Authority, the city of Sumter and Sumter County.”
Over the last two years, CTA’s passenger and light truck tyre business has reportedly grown at a rate of more than 20 per cent, volume-wise. “Our customers, replacement market retailers and automakers, have told us they need more Continental and General brand tyres”, commented Dr. Jochen Etzel, CEO of Continental Tire the Americas. “Today’s announcement is our commitment to helping them grow their business – as we grow ours. In 2011 alone, we have announced manufacturing investments of nearly $1 billion which are dedicated to increasing our production capacity in the Americas region.”
Setzer announced Continental’s plans in Sumter during an October 6 press conference in the county, an event attended by local government and civic leaders, including South Carolina governor Nikki Haley, secretary of commerce Bobby Hitt and Greg A. Thompson, chairman of the Sumter Development Board. Following the conference, Nikki Haley commented: “Continental is a world-class company, and it is truly exciting that they have chosen South Carolina for this new $500 million investment that will create 1,700 new jobs. This announcement is a big win for our state.”
In addition to the greenfield announcement, CTA also stated it will invest more than $4 million in its Lancaster County, South Carolina. headquarters to help meet the needs of a growing workforce. Within the next four years 80 new jobs will be added to the current workforce of nearly 350 employees.
Previously announced Continental plans for the Americas include a $220 million investment to expand production capacity at its tyre plant in Camaçari, Bahia, Brazil. The investment will create 400 new jobs and double capacity in the plant. In May, 2011, the company also announced it was investing $224 million, and adding 444 new jobs, in its Mt. Vernon, Illinois tyre facility in the US; this will increase capacity there by nearly four million units.
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