Continental to Establish Passenger Car Tyre Plant in Russia

Continental is investing in growth by building a new tyre plant in the Russian city of Kaluga, 170 km southwest of Moscow, with construction work to start at the end of 2011. Aspects like its good infrastructure, central geographical location and the good experience Continental has already had with the existing automotive electronics plant were among the special advantages of the new site in Kaluga.

Some €220 million will be invested in the new plant, with production slated to start at the end of 2013. The Russian government has promised to support the investment. The facility will have an output of about four million tyres a year in its first full-capacity phase, but Continental has plans to expand capacity to eight million units if the market continues to grow at current rates. Initially, the plant will employ about 400 workers.

At the new plant, Continental will primarily make summer and winter tyres under the Continental, Gislaved, Barum and Matador brands. Continental, as a major tyre producer serving the European OEMs, is thus following leading vehicle manufacturers like Volkswagen, for example, who have already had manufacturing operations in Kaluga for several years now.

Continental has had its own sales organization in Moscow since 2005 and, today, is one of the largest foreign manufacturers of tyres in the country. About a year ago, the corporation decided to build a greenfield manufacturing facility to enable it to act faster and more directly in Russia and to improve the delivery situation in the long term.