Conti lowers half-year capex across Tires, ContiTech divisions

Hamburg, Germany – Continental Group has lowered its capital expenditure by 25% year-on-year in the first half of 2026, with the cuts mainly carried out within its Tires division.

In the first six months of the year, group capital expenditure on property, plant and equipment, and software amounted to €437 million, down from €585 million the year before.

The year-on-year decline primarily related to the Tires group sector as the capital expenditure ratio in the division stood at 5.0%, down from 6.0% in the first half of 2025, said Continental in its first-half report.

The Tires group sector invested €342 million, down from €467 million in 2025, to expand production capacity at existing plants in European “best cost locations” and in the US, Germany, Thailand, China, Brazil and Mexico.

According to Continental, there were “major additions” related to the expansion of production sites in Rayong, Thailand; and Mount Vernon, Illinois; and to the construction of a wind farm for our location in Korbach, Germany.

A total of €93 million of the overall capital expenditure was attributable to the ContiTech group sector, compared to €113 million the previous year.

Investments, Continental said, were made to expand production capacity in Germany, the US, Mexico, Australia and Brazil.

“There were major additions related to the expansion of production capacity in selected growth markets for the Industrial Solutions Americas and Industrial Solutions EMEA business areas,” the group said.

In Mount Pleasant, Iowa, and Bayswater, Australia; investments were made in the expansion of production sites.

“Substantial funds,” it said, were allocated to the development of the recently opened hose production plant in Aguas calientes, Mexico.

Continental said it also made investments in all business areas to rationalise existing production processes.