Continental's 'Project Soccer' Lands in South Carolina

Continental Tire the Americas yesterday made official what virtually everyone in South Carolina already knew: the tiremaker’s first new U.S. tire plant would land in Sumter County.
continental ag board member and head of its global tire business nikolai setzer announces details of the tiremaker's first u.s. plant.
The Oct. 6 announcement was the third significant tire-related construction project announced for the state in the last two weeks. On Sept. 21, Bridgestone Americas announced some $1.1 billion projects for a new giant OTR tire plant in Aiken County, S.C., and further expansion of its consumer tire plant there.

With South Carolina Gov. Nikki Haley on hand, Continental AG board member and head of its tire unit Nikolai Setzer took the wraps off of the $500 million two-phase project, which will create 1,600 jobs. The first phase of production capacity at the plant is expected to be nearly five million passenger and light truck/SUV tires annually when the plant reaches full production levels in 2017. A second phase in the project will bring plant capacity to eight million units per year by 2021.

The new greenfield plant will be located on a 330-acre site just off of U.S. Highway 521 in Sumter County.

"This important announcement is part of Continental’s growth strategy worldwide and, especially in this case, for the U.S. market," said Setzer. "Increasing demand for Continental and General brand passenger and light truck tires in the U.S., as well as the improved business results for CTA, has made this significant investment possible. On behalf of the 160,000 employees of Continental worldwide, I would like to offer our sincere thanks to Governor Haley, the state of South Carolina, the Port Authority, the city of Sumter and Sumter County.

"The major reason for building a plant in the U.S. is to be close to our customers and to optimize logistics,” he said. “We also see a great workforce potential here. We see the U.S. as a key market for us and this announcement is a key component of growing our presence here."

"Continental is a world-class company, and it is truly exciting that they have chosen South Carolina for this new $500 million investment that will create nearly 1,700 new jobs. This announcement is a big win for our state," said Gov. Haley.

“Tires produced here will be mainly for the U.S. market with the goal of improving fill rates, but because of Continental’s global manufacturing structure, the capability exists to export to meet demand elsewhere,” CTA CEO Jochen Etzel said in an interview after the formal announcement.

In addition to the new plant, Etzel announced a $4 million expansion of the company’s headquarters in Ft. Mill, S.C. The investment will provide for a 16,000-square-foot addition, bringing the total size of the building to 91,000 square feet, and the creation of 80 new jobs there.
south carolina gov. nikki haley talks with media after the announcement.
As for the tire plant, Continental expects to begin construction in mid-2012 and complete the facility in 2013. Once completed, the plant will encompass some 1 million square feet under roof.

The plant will produce all lines and sizes of Continental and General brand passenger and light truck/SUV tires.

For the first three years of operation, all tires produced will be for the replacement market, Etzel said. After those three years, production will then be for both replacement and OE markets.

Also on hand, serving as master of ceremonies for the announcement event, was Bobby Hitt, South Carolina’s secretary of commerce. "Today’s announcement further strengthens South Carolina’s membership in the automotive club. This is also the fourth announcement this year involving the recruitment of 500 or more jobs," said Hitt.

Code named ‘Project Soccer,’ the location of the proposed U.S. plant has been a matter of much speculation since Continental AG chairman Elmar Degenhart’s April statement that the tiremaker would build a passenger and light truck/SUV tire plant in the U.S. In May, then-CTA CEO Matthias Schoenberg said the tiremaker would look south – Georgia, Tennessee and Alabama in particular.
From left: Tim Rogers, vice president of finance, CTA; Nikolai Setzer, executive board member and head of tires for Continental; Jochen Etzel, CEO, CTA; George Jurch, general counsel for CTA; and Craig Baartman, director of manufacturing for passenger & light truck tires, CTA.
That the plant ended up in South Carolina is a testament to Hitt and his team, who aggressively pursued the CTA project even as it was working feverishly to pull together logistics and an incentive package to land Bridgestone’s new plant and expansion effort.

Various news reports sated that North Carolina was also aggressive in its pursuit of the CTA plant, and a specific site in Brunswick County had already been secured. Some reports said the project was literally kicked back and forth between the two states “for months.”

In the end the Palmetto State pulled all the right strings, and will get its eighth tire plant since 1975 and its second in two weeks.

Discount Tire & Service Centers has a new sponsorship deal with the Los Angeles Angels for the 2024 season. Discount Tire said this partnership will not only benefit its customers with season-long promotions and giveaways but will also support local non-profits.

"We're thrilled to launch this strategic partnership with the Los Angeles Angels," said Sergio Andonian, president, Discount Tire & Service Centers. "As neighbors, from Anaheim, we are dedicated to serving our local communities and providing quality tire & automotive service at the most competitive prices. Together, we look forward to making a positive and lasting impact in the communities. Add baseball to the mix, and with this winning combination, the possibilities are endless."