Groundbreaking for Conti R&D centre extension

Continental’s Nikolai Setzer recently outlined the company’s intention to invest in non-automotive areas (more on this in Tyres & Accessories’ August magazine), but his comments by no means indicate a drawing away from the automotive business. The German firm’s continued interest in this area could be seen at the groundbreaking for the new extension to its research and development centre in Singapore.

The extension in Singapore is financed by a S$29.7 million (£15.3 million, €17.5 million) capital investment and the enlarged facility will be used to accommodate the business’s global expansion, and in particular its growth in Asia. Continental aims to complete the project in just over a year, and when the extension is complete it will accommodate approximately 450 employees and provide a total floor space of 5,000 square metres. The project will be executed by Boustead Singapore, the company that designed, built and leased out the R&D centre.

The centre is one of 17 R&D centres Continental operates in Asia and in terms of size is in the top three. It is operated by Continental Automotive Singapore Pte. Ltd., a Continental subsidiary since 2007. “We want to grow stronger in Asia and can report that Continental generated sales of some 6 billion euros in Asia in 2012,” stated Continental Automotive Singapore managing director Lo Kien Foh. “It is our strategic goal to increase the share of corporate sales on the Asian market from 18 per cent at present to more than 30 per cent over time. The extension of our R&D centre in Singapore strongly supports Continental’s growth strategy in Asia.” 

During the 12 months to July 2013 Continental’s employee head count rose from 650 to 780, and the managing director reports this number will almost double again within a relatively short timeframe. “With this aggressive extension plan, we commit to use local knowledge, in collaboration with our international teams, to serve customers globally and aim to offer innovative, intelligent and sustainable solutions,” said Lo. “We will continue to grow in manpower and technical competence to more than 1,300 employees within the next few years.” 

Continental worked with the Singapore Economic Development Board on various aspects of the centre’s initial set up in 2011-2012 and now its extension, and Lim Kok Kiang, the board’s executive director of Transport Engineering, also spoke at the groundbreaking ceremony. “We are pleased that Continental continues to expand its R&D capabilities in Singapore to drive innovation in in-car information management systems. Continental’s expansion is testament to our talented science and engineering workforce paired with strong intellectual property protection laws, making Singapore an ideal hub for the design and development of automotive electronics.”