Continental invests almost €50 million in Radial Agricultural Tyre Production
- Continental boosts production of agricultural tyres in Lousado, Portugal
- 125 new jobs in the coming years
- Agricultural tyres with Continental brand in the market from 2017
Hanover, June 30, 2016. Continental is investing €49.9 million in its agricultural tyres business. Over the coming years, the worldwide premium tyre manufacturer and technology company will build production capacities at its tyre plant in Lousado, Portugal. The process will create 125 new jobs for the production of the Continental branded premium agricultural tyres. The company also paved the way for future further investments in the production of agricultural tyres, depending on a positive market and Continental sales development.
"With this investment, we give a clear sign that Continental is once again active as a premium manufacturer in the agricultural tyre sector with our premium Continental brand. In Lousado, we have an excellent location and a highly motivated and experienced team, which manufactures cutting-edge radial tyres in a state-of-the-art production facility for the demanding agricultural sector," said Nikolai Setzer, member of the Executive Board at Continental and head of the Tyre division, marking the signing of the investment agreement in Lousado, Portugal.
"Professional agriculture has undergone rapid change over the past few years," explained Thorsten Bublitz, business line manager at Continental responsible for the agricultural tyre business. "In view of the growing world population and the increasing need for agricultural crops, the number of large-scale operations and therefore the demand for efficient agricultural tyres is increasing. This is where we have many years of experience as a premium manufacturer," said Bublitz. Continental intends to bring a complete tyre portfolio for agricultural tractors and harvesting machines to the market, working together with the major vehicle manufacturers in the process. The range will include radial and cross-ply tyres in 150 sizes.
The introduction of agricultural radial tyres under the brand name Continental in 2017 is marking the end of the trademark license agreement between Continental and its licensee Mitas closed in 2004. Due the recent decision of the cartel authorities regarding the acquisition of Mitas, Continental is reclaiming its brand rights earlier than 2019 as contractually agreed, and can therefore introduce its agricultural tyre portfolio under its premium brand.
The start of production for the Continental branded radial agricultural tyres in Lousado is planned for 2017. Continental is already producing cross-ply tyres for the agricultural sector in Port Elizabeth, South Africa, and Petaling Jaya, Malaysia.
Besides the investment in the manufacturing plant in Lousado, Continental is additionally investing €2.5 million in a new Research & Development Center in Lousado with the goal to attain a faster product portfolio growth of the agricultural tyres. This centre will do research in close cooperation with the Central Research & Development department in Hanover, Germany, and will initially employ five recently recruited engineers, with plans to increase the workforce up to ten with further highly qualified employees.
Continental also supplies components and systems for agricultural machines and agricultural infrastructure. The range of products extends from comprehensive instrumentation and camera solutions, to sensors, rubber tracks and conveyor belt technology, and exhaust gas treatment. In supplying this combination of components from a single source, Continental is in the position to offer agricultural companies comprehensive solutions for greater efficiency, environmental friendliness, and conservation of resources.
The investment in the radial agricultural tyre sector in Lousado is part of Vision 2025, which was launched in 2011 and is used by the Tyre division for the strategic planning and systematic implementation of technological progress. Other examples include investments in the AIBA (Automated Indoor Braking Analyzer) in 2012, the ContiLifeCycle Plant for retreading truck tyres and rubber recycling in Hanover-Stöcken in 2013, and the High Performance Technology Center in Korbach in 2014.
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Continental develops intelligent technologies for transporting people and their goods. As a reliable partner, the international automotive supplier, tyre manufacturer, and industrial partner provides sustainable, safe, comfortable, individual, and affordable solutions. In 2015, the corporation generated preliminary sales of €39.2 billion with its five divisions: Chassis & Safety, Interior, Powertrain, Tyres, and ContiTech. Continental employs more than 208,000 people in 55 countries.
The Tyre division currently has 24 production and development locations worldwide. The broad product range and continuous investments in R&D make a major contribution to cost-effective and ecologically efficient mobility. As one of the world's leading tyre manufacturers with more than 47,000 employees, the Tyre division achieved sales of €9.8 billion in 2014.
Continental Commercial Vehicle Tyres is one of the worlds' biggest manufacturers of truck, bus, and industrial tyres. The business unit is continually evolving from being a purely tyre manufacturing business to a solution provider for commercial vehicle tyres with a broad range of products, services, and solutions.