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July 19, 2016 02:00 AM

ContiTech to build new hose plant in China

European Rubber Journal Report
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    ContiTech is planning to invest $22 million into the first phase of a new plant in Qingdao, China.

    HANOVER, Germany—ContiTech A.G. has signed a memorandum of understanding to build a new plant in Qingdao, China, mainly for automotive hoses, the company announced on July 19.

    The company plans to invest more than $22 million for the first phase, which will involve setting up a greenfield factory with an initial floor space of approximately 49,200 square feet in the Sino-German Eco Park of Qingdao.

    “We want to meet our customers' needs and requirements most effectively. That's why we consequently follow our strategic approach to further localize our global operations,” said ContiTech CEO Hans-Jurgen Duensing.

    ContiTech has stated that the capacity increase is in response to “the growing market in China as well as in the Asian Pacific region for hoses and hose lines.”

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