Both plots are greenfield sites and the selection is expected to come down to which area offers the best economic incentives.

Continental AG board member Hans-Joachim Nikolin told T&A the plant will follow the same model as the company’s recently opened, Camacari, Brazil, factory and will produce 4 to 6 million passenger car tyres and between 400,000 and 600,000 truck tyres using “standard” Continental technology.

Questioning the economic viability of exporting Chinese produced tyres (particularly truck tyres) to Western markets like Europe, Nikolin explained that the new plant’s production capacity would be 100% for domestic use. Continental had earlier said that it is planning to spend 300 million euros on its Chinese project. The company is continuing its investments in Malaysia and Brazil, the executive board member added.