SHANGHAI (Oct. 10, 2007) — Continental A.G. has put into operation a 64,560-sq.-ft. tire distribution center in Shanghai to service the Chinese market.
The Shanghai Regional Distribution Center began operations Oct. 1 under the guidance of Penske/Honold, replacing a temporary center opened in March.
The new center can accommodate up to 80,000 passenger and truck tires, Continental said, which should amount to annual sales of 400,000 tires. Continental did not say where it sources tires for China.
“For Continental, this represents a logical next step in the development of Asian distribution,” said Carsten Sziegoleit, head of warehousing and tire distribution worldwide at Continental, in a prepared statement.
Penske/Honold is a joint operation of Penske Logistics, a unit of Penske Truck Leasing, and Honold Reifenlogistik GmbH, a German company that oversees more than 1 million square feet of warehousing for Continental. Penske will make use of some of its distribution partners' existing truck fleets to effect deliveries, Conti said.
The new center guarantees distribution of tires to all of China's provinces, Conti said, thereby strengthening its influence in the growing Chinese market. With the opening of its Asian headquarters in Shanghai in 2006, Continental has set up a local sales organization.