Continental AG has selected a greenfield site for its latest plant in the Province of Rayong in Thailand. The investment will cost roughly €250 million.
Set to open in 2019, the plant will produce 4 million passenger and light truck tires a year for Thailand and the Asia Pacific (APAC) region.
“With the decision to build our new tire site in Thailand we will strengthen our presence in both the Thai market and the rest of the APAC region. This plant will strongly support our planned business growth in both original equipment and replacement business for passenger and light truck tires and further establish our customer relations in both segments. We want to benefit from the growth potential in this region in the replacement market and are confident that our local production will also enable a closer cooperation with new customers to further extend our position in these markets,” said Philipp von Hirschheydt, head of the business unit replacement APAC PLT.
This investment is an essential part of the long-term growth strategy from Continental’s tire division called “Vision 2025.” The goal of Vision 2025 is to expand and balance its global manufacturing footprint to best serve its customers in all regions, Continental said.