Conti to build auto hose plant in Romania

HANOVER, Germany (Oct. 13)—Continental A.G. will invest about $10 million in the coming 12 months to build a plant for air conditioning hoses in Timisoara, Romania. The 43,000-sq.-ft. factory, which will supply primarily Volkswagen A.G. facilities in Europe, will create about 130 jobs when it comes on stream in mid-2004, Conti said at an Oct. 10 groundbreaking ceremony. The unit will employ 400 at full capacity, although Conti did not disclose the expected output. The plant will be built on the grounds of ContiTech Romania S.R.L., which was set up a year ago to oversee the construction of an automotive drive belt factory in Timisoara. That facility started production about six months ago with initial employment of 50, and should reach full capacity of 4 million belts a year by 2005. Conti also operates a tire plant in Timisoara, built in 1999-2000 and since expanded to 24,000 units a year.