HANOVER, Germany (Feb. 11)—Continental A.G. is evaluating sites in Brazil and the Baltic countries for a new tire plant, with an annual capacity of 5 million to 8 million units, a company spokesman said.
The confirmation comes after the Brazilian financial daily "Valor Economico" reported Conti was in talks with Brazilian authorities about a factory in that country's state of Bahia.
Conti makes power transmission belts and does hose and tire/wheel assemblies for vehicle makers at a facility in Ponta Grossa, Brazil. The company planned to put a modular-manufacturing-process tire plant there five years ago, but suspended the project before its scheduled 1999 start-up because of changes in market conditions.
The Brazilian media reports put the company's investment at $270 million. Conti declined to comment on the value.