Recently, Continental Group announced that it has officially signed an investment agreement with Anhui and Hefei local governments.
According to the content of the agreement, Continental will further increase its investment in China and launch the third phase of the Hefei plant. The expansion project will have an investment of 250 million euros, which will greatly increase its horse tire production capacity.
At present, the Hefei plant can produce 5 million passenger car tires per year. After the end of the third phase, its production capacity is expected to increase to 14 million by the end of 2019. At the same time, the investment project will cover two-wheel tire production projects, and plans to increase the annual production capacity from the current 2 million to 13 million by the end of 2025.
Nikolai Setzer, member of the Executive Board of Continental Group and Global President of the Tire Division, said: “The expansion of the plant worldwide is an important part of the company's 2025 vision. Since 2011, we have systematically invested more than 2 billion Euros. To enhance the mainland's global tire production capacity and support the research and development of high-tech projects. In addition, the program will create more employment opportunities for the local area, and increase the number of jobs in the existing Hefei factory from 1,150 to 2,700. ."
Up to now, the mainland has invested 250 million euros in the Hefei plant. When the third phase of the project is completed, its total investment will exceed 500 million euros.
In the planning of the company's 2025 vision, including the current annual investment of about 350 million euros in the existing factory, the mainland will allocate an additional 1 billion euros to launch the largest special investment project in history. A total investment of 2 billion euros will lay a solid foundation for the company's long-term growth, especially for the future development of the group in the BRIC countries (Brazil, Russia, India and China) and the US market.
The Continental Tire Hefei Plant was officially put into use in 2011. Since the foundation stone was laid in 2008, it has maintained good relations with the local government of Anhui Province and Hefei, as well as the general public. In addition, the mainland has also actively cooperated with local universities to promote the development of local education and research.
Recently, Burkhardt Köller, head of the Continental Group's tire business unit and CEO of Continental Group Tire Germany Ltd., was appointed as a professor at the University of Science and Technology of China. He will provide guidance and assistance to local students in finance, management and international management.
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