Construction has begun on Continental’s newest Russian factory at Kaluga, with the tyre manufacturer recently holding a groundbreaking ceremony at the site and signing an investment contract with the Kaluga regional government.
First stage work at the Kaluga plant will cost approximately 240 million euros and will provide for a four million tyres a year capacity, with the first passenger car tyres scheduled to roll off the production line towards the end of 2013.
Further expansion of the facility in the short-term is also planned, the company adds.
“We are extremely confident that our new factory in Kaluga will make an important contribution towards securing our long-term market leadership in Europe,” commented Nikolai Setzer, head of Continental’s tyre unit.
“We view Russia as being in 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 tyre manufacturer in the original equipment and replacement market sectors.”
According to Continental, the anticipated strong growth in Russia is closely linked to a targeted strategy of settlement within the vehicle industry that has already results 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 passenger car tyre plant.
“We are delighted that Continental, one of the three largest automotive suppliers in the world, is to open a tyre factory in Kaluga in additional to expanding its engine control unit and electronic component facilities,” stated Maxim Akimov, first deputy 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.”