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March 17, 2011 12:00 AM

Conti to double size of Brazil tyre plant

ERJ Staff
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    ERJ staff report (TB)

    Hanover, Germany -- Continental AG is going ahead with a second-phase expansion of its car and truck tyre plant in Camaçari, Brazil, effectively doubling the size of the plant by 2015 with a $210 million investment.

    “This investment is part of Continental's strategy to grow our tyre operations worldwide significantly, especially in the 'BRIC' countries,” said Matthias Schönberg, CEO of Continental Tire the Americas, referring to the emerging markets in Brazil, Russia, India and China.

    The project will allow Conti to nearly double the annual production capacity of the plant to about 9 million car and 700,000 truck tyres by year-end 2015. The expanded output will serve both NAFTA and Latin America, according to Renato Sarzano, general manager of Continental Tire in Latin America.

    “This investment will allow us to streamline processes, install new equipment and will add 400 direct jobs, benefitting the entire region,” said Pedro Matos, managing director of the Camaçari plant, where employment stands at 1,150.

    Conti invested $260 million to build the plant, which opened in 2006.

    Last year, Continental increased its sales in Brazil of car tyres by 25 percent and of commercial tyres by 38 percent.


    From Tire Business (A Crain publication)

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