KALUGA, Russia (Nov. 29, 2011)—Continental A.G. laid the cornerstone on its $320 million car and light truck tire plant in Kaluga, where production is expected to commence by year-end 2013.
The plant is designed to produce 4 million tires a year in its first phase, Conti said, but the capacity will double “in the near future.” Conti plans to make summer and winter tires in the Continental, Gislaved, Barum and Matador brands, which the company described as “key corporate brands on the Russian market.”
The company broke ground on the project earlier this month.
Kaluga is a city on the Oka River about 100 miles southwest of Moscow with more than 325,000 inhabitants. Vehicle makers Volkswagen A.G., Volvo A.B. and PSA Peugeot CitroÃ«n have assembly plants there.
Conti did not disclose the physical size of the plant or acreage acquired. Employment at start-up should be about 400, Conti said.
Conti said the central Russian government and local authorities in the Kaluga region have pledged their support for the new plant but did not disclose details of the types or value of assistance they are providing.
Concurrently, Conti acknowledged that it is disposing its 50-percent interest in J.S.C. Matador-Omskshina, a joint venture passenger tire joint venture in Omsk, Russia.