ContiTech Goes for Expansion - Acquisitions Underpin Strategy
Agreement signed on the acquisition of the molded brake components business from Freudenberg Sealing Technologies / Takeover of conveyor belt manufacturer Specialised Belting Supplies Ltd. strengthens ContiTech's Conveyor Belt Group
The effective transfer of the molded brake components business from Freudenberg Sealing Technologies to ContiTech is still subject to approval by the antitrust authorities. With a workforce of some 500, Freudenberg develops and produces molded brake components in Andrezieux, France; Queretaro, Mexico; and Oberwihl, Germany. About 50 employees manufacture special conveyor belts at Specialised Belting Supplies Ltd. in Thetford, UK. With the latter company's production technology, ContiTech will also be in a position to produce highly temperature-resistant corrugated sidewall belts. The respective parties have agreed not to disclose any details of the purchase prices involved in the deals.
Both acquisitions are in line with ContiTech's expansion strategy which also includes the construction of new plants. "We are increasingly relying on growth in future-oriented industries and in international markets," said Wente, who is also a member of the Continental Executive Board. The investment to set up a greenfield plant for oil handling hoses in Brazil is worth special mention in this context. "At roughly €17 million, it is our biggest single investment this year", said Wente. Furthermore, ContiTech is planning a new plant for air-conditioning lines in Kaluga, Russia, which is slated to go into operation in 2013. The company is also investing more than €10 million in a new hose line plant in Serbia. Some €5 million will be put into a new production facility for rubber compounds in Hungary by the end of 2012.
Investments in existing locations
"This year, too, we will be sticking to our investment budget for new and existing plants and facilities, as long as the global economic situation remains stable", emphasized Wente. Millions are being channeled, for example, into the German sites of Hanover, Korbach, Karben, Northeim, Oppenweiler and Waltershausen.
About ContiTech AG
With sales of €30.5 billion in 2011, Continental is among the leading automotive suppliers worldwide. As a supplier of brake systems, systems and components for powertrains and chassis, instrumentation, infotainment solutions, vehicle electronics, tires and technical elastomers, Continental contributes to enhanced driving safety and global climate protection. Continental is also an expert partner in networked automobile communication. Continental currently has approximately 167,000 employees in 46 countries.
The ContiTech division numbers among the leading suppliers of a host of technical elastomer products in the non-tire rubber sector and is a specialist for rubber technology in the non-tire rubber sector. The division develops and produces functional parts, components and systems for the automotive industry and other important industries. ContiTech has a workforce of approximately 27,250 employees. In 2011, it achieved sales of approximately €3.6 billion.
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