Hanover, Germany-Continental AG is to spend Euros 60 million over the next five years on a new facility to make high performance front and rear brake disc calipers in Slovakia.
The plant, in Zvolen in central Slovakia, will employ up to 500 people, and supply a number of European customers, said a Conti statement following a press conference in Bratislava.
The German tyre and automotive supplier signed a memorandum of understanding about the project with the Slovak Republic's Ministry of Economy on 25 Oct.
Continental's brakes business unit-part of Continental Automotive Systems and market leader worldwide in brake calipers for passenger cars-will be starting production at the Zvolen plant in late 2005.
Slovakia was chosen as the site for the new facility on the basis of labour cost and transport costs to Continental's key customers in Europe, with Zvolen specifically having â€œexcellent communicationâ€ and availability of suitably qualified personnel, the group said.