Hanover, Germany – ContiTech AG, the industrial products arm of German group Continental, is eying “faster-than-the-market” growth in the coming years, shifting its focus on “smart solutions beyond rubber.”
The German manufacturer intends to grow around three percentage points faster than the market in eight growth areas, Continental announced in its Vision 2030 strategy, unveiled during a week-long capital markets day event.
The growth potential results primarily from the increasing demand for digital and intelligent solutions in future-oriented sectors, Conti said in a 16 Dec statement.
As part of the strategy, ContiTech will utilise its knowledge of the industry and materials to open up new opportunities, such as combining various materials with electronic components and individual services.
In particular, ContiTech referred to recent moves to strengthen its plastics expertise in both the industrial and automotive sectors with the acquisition of Merlett in 2019 and a joint venture with aft automotive earlier this year.
Another potential growth area will be the development of sensor-based monitoring services for conveyor belt systems using camera-equipped drones.
Here, ContiTech will tap AI-based data processing capabilities to detect defects in belts, which are inspected from the air on open sections.
The business area also intends to further increase its "value contribution" to the German group, by developing applications for passenger cars, rail transport, the printing industry and mining.
For the mid-term, ContiTech aims achieve adjusted EBIT margin of 9 to 11% and return on capital employed (ROCE) of over 20%.