HANOVER, Germany (April 28, 2011)—Continental A.G. is planning to build a tire plant in the U.S., Conti Chairman Elmar Degenhart told shareholders today at the firm's annual meeting in Hanover.
Conti's supervisory board approved the investment for the new factory at its meeting this morning before the annual meeting, according to a Continental spokeswoman, The plant probably will producer consumer and commercial tires, she said, although Degenhart's comments focused on the need for passenger and light truck tire capacity.
“Not least of all, we also want to cover rising demand in the NAFTA region, including the large U.S. market, with local production—so there are plans for a new factory there, too, Degenhart said..
“Incidentally, these plans are further proof for the depth of the turnaround that the passenger and light truck tires division has achieved in the Americas region.”
He said at the start of the millennium, Conti's passenger and light truck tire business in the NAFTA region incurred massive losses. “Today it is profitable, and, at the same time, a growth area.”
He credited the Americas' management team for the turnaround and said the investments planned “demonstrate that we are convinced of more success.”
Conti operates two tire plants in the NAFTA region: in Mount Vernon, Ill.—co-sited with its GTY Tire truck tire joint venture—and in San Luis Potosi, Mexico.