ContiTech Takes Over Joint Venture in China
ContiTech creates common structure in China by taking over the joint venture for power transmission products - Ninghai location to be expanded - Shanghai production to be transferred to NinghaiHannover, )
The joint venture with the Ningbo Jiebao Group started in 1999 with the aim of establishing a local production facility. In 2002, the location was expanded further and production of belts for industrial, nonautomotive applications started. "As our second Chinese location in Shanghai could not be expanded - for logistical reasons - and designed efficiently in line with future customer requirements, the logical step was for us to strengthen the Ninghai location and to relocate the production activities to there from Shanghai by next year", emphasizes Seid. "This means that we continue to invest in the Chinese market, and at the same time benefit from a stronger, more uniform appearance - including to our customers. This will significantly strengthen our position." In future the company will be called ContiTech Power Transmission (Ninghai) Ltd.
Around 700,000 automotive and 200,000 industrial belts are produced each year in Ninghai. Currently there are 120 employees and the takeover is certain to mean new posts being created as the location's sales are to increase significantly in the coming years. Approximately 100 people are employed in Shanghai; the sales team will remain there even when production moves.