Work on Continental AG’s Kaluga passenger tire factory in Russia is underway.
On Nov. 29, the tiremaker held a foundation stone laying ceremony at the site and signed an investment contract with the Kaluga regional government. Continental says first stage work at the Kaluga plant will cost approximately 240 million euros and provide for a four million tires a year capacity, with the first passenger car tires scheduled to roll off the production line toward the end of 2013. Further expansion of the facility in the short-term is also planned, the company adds.
“We are very confident that our new factory in Kaluga will make an important contribution toward securing our long-term market leadership in Europe,” commented Nikolai Setzer, head of Continental’s tire unit. “We see Russia as being in the future one of the most important individual markets, with strong double-figure levels of growth in vehicle registrations, and we intend to build upon our position here as the leading tire manufacturer in the original equipment and replacement market sectors.”
According to Continental, the anticipated strong growth in Russia is closely linked to a targeted policy of settlement within the vehicle industry that has already resulted in numerous international car manufacturers and suppliers establishing facilities in Kaluga. Both Russia’s national government and the Kaluga regional administration have assured their support for the new Continental plant.
“We are very pleased that Continental, one of the three largest automotive suppliers in the world, is to open a tire factory in Kaluga in addition to expanding its engine control unit and electronic component facilities,” stated Maxim Akimov, vice governor of the Kaluga region. “With the settlement of leading international vehicle manufacturers we want to ensure long-term that the vehicles on Russia’s roads are built locally using the newest available technologies.”
In the long-term, annual production capacity in Kaluga will be increased up to eight million tires. The factory will mainly produce summer and winter tires for the Russian market under the Continental, Gislaved, Barum and Matador brand names. (Tyres & Accessories)
