MoU for Conti’s Russian plant signed
In conjunction with the Russia-Germany summit held in Hannover on July 18 and 19, Continental’s CEO Dr. Elmar Degenhart and the governor of the Kaluga region in Russia, Anatoly Artamonov, signed a memorandum of understanding on the new passenger tyre plant Continental is to build in Kaluga. The tyre maker intends to invest some 220 million euros in the Kaluga factory; construction will get underway before the end of the year and the factory is expected to be ready for production in late 2013. The Russian government has pledged to support the new site.
Local production in Russia will allow Conti’s Passenger and Light Truck Tires division to benefit from a waiver of import duties and lower transport costs, making it more competitive. Initial production capacity will be around four million tyres, a figure Continental says will be doubled “at an appropriate time.” Output will consist of summer and winter tyres for Continental’s key Russian market brands – Continental, Gislaved, Barum and Matador.
The Kaluga plant will have a workforce numbering around 400 by the end of 2013. New employees will receive instruction and training at other passenger tyre plants, a concept Continental says proved highly successful at its plant in Hefei, China, where production officially commenced in spring 2011.