Hannover-based Continental AG is a leading automotive supplier and – according to the company – is “the choice of leading car manufacturers, offering award-winning tyres that deliver responsive braking in all weather conditions.”
The production of the 200 millionth tyre pressure sensor took place at the start of July. Continental´s locations in France (Toulouse), Korea (Icheon) and Mexico (Guadalajara) supply a large number of automobile manufacturers in Europe, Asia and America.
In the aftermath of June’s Brexit referendum, more than a few voices called for the UK government to reconsider its decision to leave the European Union. And while the new Prime Minister is adamant that “Brexit means Brexit,” we retain the option of later rejoining the club should we wish to. The same applies within the tyre industry, as we recently witnessed with Germany’s Continental AG. More than a decade after its ‘Agrexit’, the company will soon once again produce agricultural tyres under its main Continental brand name.
In February, Continental announced plans to build a new commercial vehicle tyre plant in the US state of Mississippi and shared that the US$1.4 billion project would eventually create some 2,500 jobs. Construction of the plant is not scheduled to begin until 2018 and production won’t get underway until the end of the following year, however concerns have already arisen and even a protest held over the potential makeup of the plant’s construction team.
The official opening of Continental’s newest test centre took place last Friday, and the tyre maker and automotive supplier says this facility, which is located in Yancheng, Jiangsu province, will “provide Continental with a more solid foundation for technical support and product development in China.”
Two of Continental’s non-tyre businesses have new leaders. The Hybrid Electric Vehicle (HEV) business unit, part of the Continental Powertrain division, is headed by Rudolph Stark, while the Stephan Rebhan takes over Stark’s former position as head of the Transmission business unit, which also belongs to the Powertrain division. Both changes are effective immediately.
Continental Tyre Group has bought Bandvulc (B.V. Environmental Ltd.), one of only two substantially sized independent retreaders in the UK. Not only does the deal change the face of UK tyre retreading, it also has a significant impact on commercial vehicle tyre market shares owing to the fact that Continental can now count Bandvulc’s strong fleet management, service provider and independent truck tyre retreader amongst its own. The takeover will establish Bandvulc as a wholly owned subsidiary of Continental UK Group Holdings Limited. T&A understands Bandvulc’s existing management team are to continue to lead the business.
Over a number of years, Czech tyre maker Mitas a.s. has distanced itself in steps from the Continental brand it’s produced under licence since 2004. Three years ago the company announced an extension of this licence until 2019, however recent events have spurred Continental AG to reclaim its agricultural tyre brand ahead of this date. Continental has now announced a €49.9 million investment in its own agricultural tyre business, and the company will begin producing agricultural radials next year.
Leading tyre manufacturers have begun offering their responses to the UK electorate’s decision to leave the EU. Describing the trajectory of the Brexit vote as “very worrying”, Continental AG CEO Dr Elmer Degenhart commented: “Taking the pan-European context into account the vote is very worrying. ‘Everyone on his own’ does not fit the idea behind the formation of the EU and cannot be the answer to the challenges of the global competition with America and Asia.”
However, Degenhart does not expect big problems for Continental itself: “The direct economic impact on Continental is expected to be limited because currently we generate less than 3 per cent of our sales in the UK and expect to be successful in this market also in the future.”
Effective 1 July 2016, Enno Straten has been appointed managing director of Continental’s Commercial Specialty Tires (CST) business unit. He succeeds Dr. Michael Märtens who left the company last year to concentrate on other projects outside the industry. Straten, who has worked at Continental for 17 years, will report directly to Dr. Andreas Esser, executive vice president of Continental Commercial Vehicle Tires.
At the start of May Continental AG appointed Klaus Kreipe as head of Original Equipment Truck Tires worldwide. Klaus Kreipe holds this position as Vice President and manages the business field from Hanover-Stöcken. In his new role, he reports directly to Andreas Esser, executive vice president and head of Continental’s Commercial Vehicle Tires business unit. Kreipe succeeds Peter Matzke, who has retired after almost 40 years working in different functions at Continental.
Continental is show its specialist mining tyres at Electra Mining Africa 2016, held 12 – 16 September at Expo Centre Nasrec in Johannesburg. As well as a range of light, heavy and special application belts, mining tyres on-show include: the UnderGroundMaster, DrillMaster, ScoopMaster and EarthMoverMaster. Not only will these tyres be shown for the first time in Africa, but they are also being previewed ahead of their official launch at the MINExpo tradeshow in Las Vegas, USA, from 26-28 September.
Continental Commercial Specialty Tires (CST) has been presenting selected products from its port tyre range at this year’s TOC Europe event. For the first time, the TractorMaster tyre will be showcased in the new 280/75 R22.5 size.
“Port logistics is constantly changing. Digitalization, connectivity, and the requirements for minimal downtimes and reduced costs are challenges that our customers have to overcome,” said Julian Alexander, Product Line Manager Material Handling at Continental CST. “We are constantly developing our product range in order to be able to offer the best solutions for their individual needs from a single source – and for every port vehicle.”
In recent months Continental AG has been evaluating potential sites for its new headquarters, and has examined plots in Hannover and the nearby town of Garbsen. The company now shares that it is favouring the location near the ‘Pferdeturm’ in Hannover as the site for its future headquarters. Continental says it has officially entered concrete, detailed negotiations to this end with the city of Hannover.
Semperit has marked its 110th anniversary by updating its truck tyre portfolio in a two-day event in Vienna. The Austrian tyre brand – a Continental brand since 1985 – presented its Runner F2 (steer), award-winning D2 (drive) and T2 (trailer) tyres as a “breakthrough into a new chapter of [Semperit’s] illustrious history,” according to Constantin Batsch, head of the truck tyres replacement EMEA business unit at Continental Reifen Deutschland.
Back when Continental’s facility in Korbach, Germany celebrated its centenary in 2007, most people assumed the site’s best days were already behind it. At the time, the company aimed to relocate a greater proportion of its production to lower cost countries, and the onset of the financial crisis a year or so later did nothing to increase the attractiveness of locations such as Korbach. Therefore it came as a surprise when Continental announced a €45 million investment to set up a “factory within a factory” at the Korbach plant. On 7 June this facility, the High Performance Technology Center (HPTC), entered operation.
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