On August 2, Continental signed a long-term option to purchase additional land at its Hefei tire factory in China. The 11-member Chinese delegation, led by Han Bing, deputy mayor of Hefei, and composed of senior representatives from various committees and authorities, specially visited Hannover to determine and sign the agreement. Deputy Mayor Han Bing and Boca Kohler, Chairman of the Management Committee of Continental Group Tire Division and Head of Financial Control of Continental Group Tire Division, signed the agreement.
“Based on our long-term development strategy – 2025 vision, we are systematically expanding the capacity of our tire factory in Hefei, China,†Kohler said at the signing ceremony. “This additional land purchase option gives us a chance to get more Double the land area, let us have long-term development space in the planning." He added: "On this basis, we can now consider several very different scenarios and act on the actual development of the market and our sales in different product categories."
Continental's tire factory in Hefei officially opened in 2011, and continues to expand the production capacity of its car tires and light truck tires on the current land, which has reached an annual production capacity of about 5 million. At present, the investment in the third phase of the expansion project under construction in Hefei is 250 million euros, which can increase the annual production capacity to 14 million in the existing land. At the same time, bicycle tire production capacity is gradually increasing, reaching an annual production capacity of 13 million by 2025. Since the foundation of the first phase of the Hefei plant, Continental has invested more than 500 million euros in Hefei.
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