JACKSON, Miss.—Continental A.G. confirmed that it intends to build a commercial vehicle tire plant in Mississippi, where the state legislature on Feb. 4 approved an economic incentives package valued at more than $275 million.
Conti declined further comment until Feb. 8, when it expects to make an official statement.
According to various media reports, the tire plant project would entail in investment of up to $1.45 billion and eventually provide jobs for 2,500 workers.
Mississippi Gov. Phil Bryant convened an extraordinary session of the Mississippi legislature today to consider measures aimed at supporting an industrial project that would include “certain tire or other rubber or automotive manufacturing plants.”
The session considered a litany of suggested amendments to Mississippi Code of 1972—also known as the Mississippi Major Economic Impact Act—to provide for financial assistance and/or tax breaks for an industrial project of this nature.
Specific measures mentioned in the governor's proclamation included:
• Authorize the issuance of state general obligation bonds
• Allow the Mississippi Major Economic Impact Authority to award contracts on the “basis of negotiation”
• Income tax-exempt status, provided certain employment goals are met ;
• Offer “fee-in-lieu” status in place of ad valorem taxes;
• Authorize the county where projects are located to “assist the enterprise establishing the project and certain public agencies in defraying certain costs” and to appropriate such funds from its general fund or the proceeds of general obligation bonds;
• Authorize certain public agencies to provide “periodic grants and other such contributions of funds.”
This would be the German tire maker's third tire plant in the U.S. and second with commercial vehicle tire capacity.
Conti makes truck tires at a plant complex in Mount Vernon, Ill., where it only recently completed work on a five-year, $224 million investment to raise capacity, including output of wide-base single truck tires.
Conti also is in the midst of a $500 million expansion at its 2-year-old car and light truck tire plant in Sumter, S.C., where capacity will double by 2021 to 8 million units a year.