HANOVER, Germany—Continental A.G. will invest nearly $330 million over the coming few years to boost capacity at its 5-year-old tire plant in Rayong, Thailand, by 3 million units per year.
The company broke ground on the expansion in early July but did not disclose the investment sum or size of capacity expansion. The plant's current capacity is 4 million units a year.
Thailand's Board of Investment is supporting the project under its Investment Stimulation Measure for Economic Recovery Scheme, according to Conti.
The expansion is expected to create about 600 additional jobs in the upcoming years, adding to the current workforce of more than 900 employees.
"Our latest capacity expansion in Rayong reflects our strong growth in the Asia-Pacific region, one of Continental Tires' strategic growth markets, Dalibor Kalina, head of Continental's business area replacement tires in the Asia-Pacific region, said.
"With our increased production capacity, we will meet the demands of our customers even better, locally in Thailand, and regionally in the Asia-Pacific markets."
Plant Manager Vignesh Devasenapathy added: "At Rayong, we take great pride in being a very versatile and reliable part of Continental's global tire production network. We supply the vehicle manufacturers and the replacement tire sector with both passenger, light truck tires and motorcycle tires,"
"Our latest expansion is a significant milestone in addition to this year's anniversaries of 15 years of tire business in Thailand and five years of tire production in Rayong."
The Rayong plant produces premium tires, such as the MaxContact MC7, motorcycle tires and tires that meet requirements for electric vehicles. In 2023, Continental equipped all the top five highest-volume manufacturers of electric vehicles in the Asia-Pacific region with original equipment tires.
The plant meets high energy efficiency standards, Conti said, and is equipped with the latest production technologies, while logistics and handling processes are highly automated. With a photovoltaic capacity of 6.7 megawatts peak, 13% of the annual electricity necessary in tire production can be covered by renewable energy sources, Conti said.