Continental to build first tyre plant in China

Shanghai. October 31 (Gasgoo.com) - World fourth largest tyre maker, Continental AG has signed a US$215-million investment agreement with city government of Hebei, Anhui province to build first Continental tyre plant in China, according to a report on the official website of the Hefei City government.

Construction of the new plant will start in mid-2008 and it should begin production in 2010 with an annual capacity of 4 million car tyres. The plant will produce Continental-brand tyres, mainly to meet China's domestic demand.

Continental has investigated more than 20 Chinese cities over the last two year before it finally decided to choose Hefei, the report said. Continental officials said the company will use the state-of-art tyre production and environmental protection technology in the Hefei plant. 

"With this move, we are entering one of the world's most dynamic markets", said Manfred Wennemer, Continental executive board chairman.

China is the fastest-growing tyre market in the world, worth US$8 billion and accounting for 9% of global sales, according to the China Rubber Industry Association.