Continental opens auto tech center in Shanghai

Shanghai, April 3 (Gasgoo.com) International automotive supplier Continental opened a new automotive technical center in Jiading Industrial Zone, Shanghai yesterday. On the same day, a memorandum of understanding (MoU) was also signed to set up a new plant nearby.

The tech center, Continental's third one in China, is to conduct vehicle application development and system test of Continental's new technology and product for the local Chinese customers. With an undisclosed amount of investment, the center focuses on two main business units of Continental-- chassis and safety, and powertrain. The engineering activities cover electronic brake systems, hydraulic brake systems, engine management and system control.

"We expect 25-percent of our total sales to be generated in this (Asia) region by 2013," said Mr. Jay Kunkel, president of Continental Asia and member of the automotive management board of Continental, adding that the Asian market accounted for17 percent of the company's total sales last year, 4 percent more than in 2007. As planned, the center is to serve the local Chinese market at the initial phases, and then in later years other Asian markets.

Late last month, Continental inaugurated a new tech center in Bangalore, India. The Indian center "develops automotive technology and provides software services for Continentals Automotive Group," according to the official announcement.

Continental set up its first joint venture plant in China in 1994 with local automaker SAIC. Up to now, the auto component and tires supplier owns nine manufacturing facilities in China.