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Continental Invests US $224 Million in Expansion of Tire Plant in Mt. Vernon (USA)
- Investment is part of Continental's growth strategy in tire operations worldwide
- Total investment in Mt. Vernons since 2006 now more than US $ 486 million
- Increased demand for Continental tires in North America will lead to more than 400 new full-time jobs over the next four years
Increasing demand for Continental and General Tire brand passenger and light truck tires in North and South America is the driving force behind a US $224 million investment announced today by Continental Tire the Americas, LLC. (CTA). Along with the investment come a total of 444 new full-time jobs to be filled over the next four years. The investments are part of Continental's comprehensive growth strategy for its tire operations worldwide. The announcement was made at a news conference at the Mt. Vernon plant, highlighted by members of Governor Pat Quinn's administration after he signed into law legislation last week.
"Today's announcement would not have been possible without the support of the states of Illinois and South Carolina," said Nikolai Setzer, Head of the Passenger & Light Truck Tire Division and member of the Executive Board of Continental AG. "Both states worked with us as strong partners to offer us competitive incentives to create these well-paying jobs with excellent benefits for the workforce in Illinois and South Carolina. Continental Tire the Americas is experiencing exponential growth and demand for its tires throughout the region," explained Setzer. "Adding production capacity to meet this regional demand was absolutely essential as part of our global growth strategy. This business growth is highlighted by a double digit increase in total volume for the Americas region over the past two years." Product mix improvements have increased the region's profitability. Importantly, market share has increased in every market since 2008 continuously.
Details about the Mt. Vernon project
Continental will complete this investment over the next three years. Of the US $224 million, US $171 million will be directed for new machinery and equipment, and US $53 million will be directed for building and infrastructure.
The Mt. Vernon plant capacity will increase by approximately four million tires per year. "Including today's announcement, CTA has invested nearly US $500 million in this facility since 2006 because our employees here have proven their dedication to successfully meeting the ongoing challenges in our industry," said Matthias Schoenberg, CEO of Continental Tire the Americas. "This significant investment is a reflection of CTA's ongoing commitment to the city of Mt. Vernon and the State of Illinois and recognition of the superior work being done here by our highly skilled and very motivated team." Employment at the plant has grown by 400 jobs since 2006. The additional full-time jobs will bring total plant employment to nearly 3,000 in the next three years.
More Expansion News for Continental Tire the Americas
In March 2011, Continental Tire the Americas announced a US $210 million investment to ex-pand production capacity of its tire plant located in Camaçari, Bahia, Brazil. The investment will create 400 new jobs and double capacity in the plant to more than eight million per year. "With all this activity in the region I am confident that Continental Tires the Americas will continue on this successful path of providing our customers in North and South America with a broad selection of outstanding tires for their cars and trucks," Schoenberg said.
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