Continental breaks ground on motorcycle tire plant in Thailand

RAYONG, Thailand—Continental A.G. has broken ground on a motorcycle tire plant in Rayong that the company says is "in the immediate vicinity" of its recently opened passenger tire plant.

The German tire maker said it is planning to invest about $30 million in the unit throughout the next few years. The project is expected to create 100 jobs at full capacity.

Set for operation in 2021, the plant initially will focus on radial tires and later will expand to manufacture bias-ply models as well. Continental declined to reveal the capacity of the new plant.

In addition to the Thai plant, Continental said its Korbach location in central Germany would continue to focus on the development and production of premium motorcycle tires, accompanied by "a further substantial increase in capacity."

The release did not elaborate on the expansion project in the German factory.

The investment in Thailand, Conti said, is driven by "the ongoing dynamic demand" for motorcycle tires in Europe, the U.S. and the growth markets of Asia and South America.

Continental's car and light truck tire plant in Rayong started production in late March, two years after the company broke ground on the $265 million project.

The plant is designed to produce up to 4 million tires per year for Thailand and the Asia Pacific region by 2022, Continental said, with up to 900 employees at full production.