HANOVER, Germany—Benecke-Kaliko Group is expanding its operation in Asia.
The producer of surface materials for automotive interiors plans to build a second plant in China, it said, adding that the foundation stone for the facility will be laid before the end of fall.
Initial cost for the first phase of the project was estimated at about $50.7 million. The company, a subsidiary of ContiTech A.G., said the new factory will be about 258,330 square feet.
Material made at the site, located in Changzhou, is destined for the Chinese automotive market. The plant is needed because of continued high demand for Benecke-Kaliko's products, according to Dirk Leiss, chairman of the executive board.
“Our second plant will make a substantial contribution to our continued success in penetrating global markets,” he said. There is strong demand from auto makers in China for the company's products, he said, in particular for high quality and environmentally compatible materials for automotive materials.
Benecke-Kaliko intends to build the plant and operate it entirely on the principles of sustainability, Project Manager Gebhard Parigger said.