· Long term investment totaling approximately $1.4 billion and providing 2,500 jobs
· Project is part of Continental’s ongoing growth strategy
Continental, the worldwide premium tyre manufacturer and technology company, has officially broken ground at the site of its new tyre plant near Clinton, Mississippi, in the United States. The ceremony, attended by state and local governmental officials, marked the beginning of the construction process, which is expected to be completed in 2019.
Continental has committed to a long term investment totaling approximately $1.4 billion and will employ 2,500 people when the plant reaches full capacity in the next decade. The new manufacturing facility is located at a greenfield site near the town of Clinton, 20 miles from Jackson, the capital of Mississippi. Continental expects to begin construction of the plant in 2018, with tyre production expected to be under way by the end of 2019. The site is more than 400 hectares and, thanks to its size and location is well suited for any future expansion requirements.
“Building this new facility in Mississippi is a critical part to the growth strategy for Continental Tyres, known as Vision 2025,” said Nikolai Setzer, member of Continental’s Executive Board and head of Continental’s global tyre business worldwide. “This is the first new plant, globally, for the truck and bus tyre business in more than ten years.”
Dr. Andreas Esser, Executive Vice President and Head of the Business Unit Commercial Vehicle Tyres, illustrated the reasons for building this new production site: “The new plant brings us closer to our customers. We have had other major investments before but Clinton is the biggest investment to date. We are able to make this large investment due to the success of our business unit and because of the dedicated and successful work of our workforce both in the Americas and worldwide.”
“This plant is a significant step in our commitment to grow our commercial vehicle tyre business in North America,” said Paul Williams, Executive Vice President, Continental Commercial Vehicle Tyres, the Americas. “We look forward to strong business relationships with state and local authorities as well as with our suppliers. With this new plant, we have the ideal environment to provide even better service to our customers in the Americas.”
Continental’s business growth in commercial vehicle tyres has consistently exceeded the market over the last five years and the company continues to see customer demand for its products - both new truck and bus tyres as well as retreads - growing beyond the company’s existing capacity.
In addition to the planned investment in Mississippi, Continental has invested nearly $2.5 billion in the past decade in manufacturing, technology, facilities and product development to grow its tyre business in the Americas. Globally, Continental’s other major investments in its commercial vehicle tyre production include the announced expansions of the plants in Lousado (almost €50 million) this year, Puchov (€100 million), Otrokovice (around €165 million), and Mt. Vernon (around €70 million) in 2013.