Continental Expands China Tyre Plant to Boost Annual Capacity to 18 Million by 2027

Key Highlights:

• Continental has opened the fourth expansion phase of its tyre plant in Hefei, China.
• The expansion will increase annual production capacity to 18 million tyres by 2027.
• The total investment in the Hefei plant now stands at close to a billion euros (Rs 8,788 crore).
• The expansion will create 400 new jobs and boost production of Ultra High-Performance (UHP) tyres.
• Continental has 20 tyre plants in 16 countries, including India, and focuses on digitalizing and automating its operations.

Continental began the fourth expansion phase of its tyre plant in Hefei, China. The total investment in the Hefei industrial complex is currently close to one billion euros (Rs 8,788 crore). 

Continental Tires plans to expand its single tyre plant in the country, increasing annual manufacturing capacity to 18 million passenger and light truck tyres by 2027. 

This development will boosts the entire production capacity of technologically advanced Ultra High-Performance (UHP) tyres for Asia-Pacific (APAC) markets, particularly China. UHP tyres are 18-inch or larger tyres that are primarily suited for performance driving. This will also create around 400 jobs in the future years

"Our latest expansion reinforces our 'in the market for the market' strategy. It helps us to better fulfill the needs of our Asia-Pacific customers. Expanding our plant in Hefei for the fourth time demonstrates our business success in these markets," said Dalibor Kalina, Head of Continental's replacement tyre business in the Asia-Pacific region.

Continental, which continually invests in the digitalization and automation of its global production operations, has 20 tyre plants in 16 countries, including India.

Also Read: Continental's UltraContact NXT Wins German Innovation Award

CMV360 Says

Continental's expansion in Hefei shows its commitment to meeting the growing demands of the Asia-Pacific market. By increasing production and focusing on high-performance tyres, Continental can better serve its customers and strengthen its market position. This expansion also creates local jobs and highlights the importance of new technology in the tyre industry.