HANOVER, Germany (Feb. 12, 2004) — Continental A.G. is evaluating sites in Brazil and the Baltic countries for a new tire plant, with an annual capacity of 5 million to 8 million units, a company spokesman confirmed recently.
The confirmation comes after the Brazilian financial daily Valor Economico reported Conti was in talks with Brazilian authorities about a plant in that country's state of Bahia.
Conti already has a presence in Brazil, in Ponta Grossa, where the firm makes power transmission belts and does hose and tire/wheel assemblies for vehicle makers. The company planned to put a modular-manufacturing-process tire plant there five years ago, but suspended that project before its scheduled 1999 start-up due to changes in market conditions.
The Brazilian media reports put the company's investment at $270 million. Conti declined to comment on the value.
The new plant would be Conti's 21st wholly or majority-owned tire plant worldwide. It also has minority stakes in three others.