Continental expands, adds jobs at Hefei, China, tire plant

HEFEI, China — Continental A.G. has completed work on a fourth expansion of its 13-year-old plant in Hefei, the only one it operates in China.

Once the ramp-up is complete, likely sometime in 2027, the facility will have an annual production capacity of around 18 million passenger and light truck tires, particularly ultra-high performance tires. That's double the plant's current rated capacity.

Continental budgeted $294 million in 2017 toward this expansion, bringing total investment in the 7..2 million sq.-ft. factory to nearly $1 billion. 

An additional 400 jobs are expected to be added in the coming years, Continental said, on top of about 2,000 already employed there.

"Our latest expansion further solidifies our 'in the market for the market' approach. It enables us to meet the demands of our customers in the Asia-Pacific region even better" Dalibor Kalina, head of Continental's replacement tire business in the Asia-Pacific region, said in a statement.

"Expanding our plant in Hefei for the fourth time is a testament of our business success in these markets."

Underscoring its commitment to the region and to high-performance products, the Hefei plant features advanced automation technology. This, the tire maker said, "ensures modern, digital, ergonomic and sustainable working place."

Further, the ISCC-Plus-certified facility is designed around sustainability and makes use of renewable energy such as solar. Solar power generated from the panels installed on the roof provide 27 million kilowatt hours of electricity annually and contributes 18% to the total electricity needed for production.

In a news release, Continental highlighted the plant's innovation, automation and sustainability as foundational for the company's 21st century goals, which include 100% climate-neutral operations by 2050.

The fourth largest tire maker globally, Continental operates 20 tire plants in 16 countries.