QINGDAO, China—ContiTech A.G. has broken ground on the first phase of a hose plant it intends to build in Qingdao.
The new addition will significantly boost capacity of mobile fluid application products, principally low pressure hoses, produced by the company in the country.
Its newest factory will span about 161,458 square feet and is projected to produce approximately 15 million low pressure hoses annually in its first full capacity phase.
Depending on market development, the firm plans to expand the facility further over a five-year period and complete all phases in 2020.
When ContiTech first announced it planned to build the factory earlier this year, it estimated the cost of the first phase of the project at more than $22 million.