Hannover, Germany -- Continental AG is setting up a new passenger and light truck tyre plant in the Chinese city of Hefei in the Anhui province. The company will invest a total of about EUR150 million in the plant. Construction will get underway in mid-2008, with the start of production planned for early 2010. An appropriate investment plan was agreed upon on October 28.
The required permits still need to be granted by the central government in Beijing.
In Hefei, Conti intends to make premium Continental brand tyres. Conto said the new plant is being equipped with ultra-modern production and environmental technology. The company will set up a qualification program and cooperate with the local university for the training of the employees. In the long term, Continental is planning to produce four million passenger tyres annually in Hefei for the booming Chinese market.
During over two years of intensive study, Conti said it looked at more than 20 possible locaÂtions, with the decision going to Hefei.