HANOVER, Germany—ContiTech A.G.'s Fluid Technology business plans to build a plant in Kaluga, Russia, that will produce air conditioning and power steering lines.
Cost of the project was estimated at about $16.8 million.
Construction of the structure is expected to begin in February with some parts production slated to begin in December 2013, the company said. An administration building will be built next to the production plant.
The company is constructing the facility in the country because the Russian automotive market is one of the strongest in the world, according to Matthias Schoenberg, who heads up the firm's Fluid Technology business unit, ContiTech's largest operation. The new site will help it gain a foothold in the Russian market, he said.