Continental opens HBS plant in China, eying Asian market

Shanghai, July 8 (Gasgoo.com)--The world's No. 2 automotive supplier Continental AG today opens its wholly-owned plant in Changshu city, near Shanghai. The Hydraulic Brake System products that have just been put into production will support its whole Asian market.

Continental Automotive Systems Changshu Co. Ltd was established one year ago with a total investment of about 600 million yuan. "This is Continental's first overseas plant that offers the full-range hydraulic brake products from one single location, and we'll develop new technologies and products for local manufacturing in China, such as drum brakes and calipers for emerging markets," said Heinz Zingel, executive vice president of HBS business unit and member of the chassis & safety management board of Continental AG.

The production capacity of the Changshu plant will reach 5 million calipers and 2.4 million actuation units per year by 2011. The HBS plants in Asia will contribute to 20% to 25% of Continental's worldwide output by 2013, and China will be the major driving force for the growth, according to Mr. Zingel.

Next year, a rubber product plant will be opened also in Changshu by ContiTech, a major division under the Continental group. And in 2010, Continental's first tire-making facility in China will kick off in Wuhu city, where the country's largest independent automaker Chery Auto is headquartered.

Continental starts its automotive business in China in 1994 and moved the Asia headquarters to Shanghai in early 2006. Up to now it has nine plants and one testing center after integrating Siemens VDO's business in China.

Continental AG opens parts plant in Changshu on July,8