Continental opens R&D center in Shanghai

Shanghai, China, November 18, 2009: The international automotive supplier Continental AG has opened its new Asia Headquarters and R&D Center in Shanghai’s Yangpu district, China. The Center marks another significant milestone for the growth of Continental in China and Asia, and aims to reinforce its position at the forefront of the market by providing increased localization and advanced technical support to customers in the Chinese market.

Located in the Headquarters and R&D Park on Dalian road in Shanghai’s Yangpu district, the new facility is a 16-floor office building with a total floor space of approximately 15,000 square meters. Currently around 700 employees from Continental Automotive Group have been relocated to this facility and by early 2010 it will house approximately 900 employees. It functions as Asia Headquarters as well as an important technical center for the design and development of vehicle electronics. Continental Automotive Tech Center Jiading, the other technical center in Shanghai, focuses on vehicle application development and systems testing, covering electronic brake systems, hydraulic brake systems, and engine management and system control. The total capital investment in both sites amounts to approximately €60 million.

As a worldwide leader in the four automotive megatrends -- safety, environment, information and affordable cars -- Continental boasts technical innovations and a broad product portfolio in the fields of Chassis & Safety, Powertrain and Interior. Moreover, with its strong competence in systems integration and the rapid growth of its local production and R&D footprint in China, Continental is capable of providing products and solutions customized for the Chinese market that enhance driving safety, reduce CO2 emissions, and promote information management and affordable cars.

Mr. Helmut Matschi, Member of the Executive Board of Continental AG and President Division Interior outlined the new investment, “Asia is the fastest growing market and will continue to expand as an export base in the future development of the global automotive industry. China is playing an increasingly important role and has become one of the key marketplaces for all vehicle manufacturers and automotive suppliers. From the time Continental took its first step into China in 1994, until the opening of this new Asia Headquarters and R&D Center, all our efforts have demonstrated our great confidence in the sustained growth of the market and our strong commitment to future development and continuous investment in China. The grand opening of the new Asia Headquarters and R&D Center marks a strategic step in the further strengthening of our leading position in China and Asia.” 

Mr. Jay Kunkel, President Asia and Member of the Automotive Management Board of   Continental AG commented, “Continental’s new Asia Headquarters and R&D Center, which was completed this September, will be a great contributor to the expansion of our local R&D talent pool, a surge in our local R&D competence and the optimization of our competitiveness. We estimate that a minimum of 25% of our global sales will be achieved in Asia by 2013. Moreover, our approach also reflects the automotive industry’s concentration on so-called ‘affordable cars’. We are intensifying our localization strategy to develop specific products and solutions for the Asian and Chinese markets with focus on ‘affordable cars’, while maintaining our position as a leader in advanced technology and innovation here in China and worldwide.”