Continental expanding steel cord belt manufacturing in Brazil

BRASILIA, Brazil—Continental A.G. again is increasing its footprint in South America, investing more than $28 million ($160 million Brazilian real) in steel cord conveyor belt manufacturing operations.

The expansion will incorporate the company's efforts toward climate neutrality by 2050 and includes new facilities and new machinery. A location within the capital city of Brazil has not yet been determined.

The expanded area is slated to be operational by some time in 2024, Conti said, and will include an expanded mixing line.

"Around the globe, Continental is committed to employing and providing the safest and most sustainable solutions in the mining industry," Friederichsen said. "By far the world's largest regional market for heavy steel cord belts is in South America, determined by the three countries Brazil, Chile and Peru."

Friederichsen said Conti is negotiating a tax incentive package with some states in Brazil to confirm the final location this month for the expanded production area.

"The additional capacity will ensure that we can better meet the growing need for high-strength belts," he said.

The company hinted that another building expansion and the installation of a press line in Brasilia could follow this planned expansion.

Steel cord belts produced by Conti typically can withstand forces between 6,000 Newtons and 10,000 Newtons per millimeter, and are used in mining operations throughout South America.

As a result of urbanized and electrified mobility, demand for iron and copper ores are rapidly increasing, according to Conti.

The company already has a belt manufacturing plant in Ponta Grossa, Brazil; and another in Santiago, Chile, the latter of which has seen similar retrofits to enable 100-percent carbon neutrality (one part of climate neutrality).

"By continuing to produce locally, we reduce CO2 emissions and can save transportation costs," Friederichsen said. "This is part of our commitment to a sustainable future."

Since the end of 2020, Conti claims that "all purchased electricity for the company's manufacturing sites worldwide has been switched to green power and is already climate neutral." By 2040, Conti expects its entire production line will be climate-neutral.

In concert with the South American investment, the Continental Recycling Initiative, part of Conti Conveying Solutions, is looking at options for recycling for the refurbishments of belts.

And Conti is active in Brazil in other areas, producing commercial vehicle tires, manual and digital tachographs and tachometer displays for light and heavy commercial vehicles for the South American market.