Continental Expands its Presence in Russia with the Official Opening of the New Tire Plant

Continental Corporation, one of the leading automotive supplier and tire manufacturer in the world, announced the official start of the serial production at the new tire plant in Kaluga. The construction of the plant started in November 2011 and was successfully completed within less than two years time and therewith according to the schedule.

ʺThe new Greenfield in Kaluga - as of now the most modern and technically advanced manufacturing site in Continental’s manufacturing footprint - is a key pillar of Continentals long-term growth strategy in Russia. This is a major step toward our replacement clients and the fulfillment of our commitment to the leading car manufactures who have established plants in this region as well”, said Executive Board member and Head of the Division Tires, Nikolai Setzer. “I am excited to take part in todays plant opening ceremony after I attended the Groundbreaking ceremony in 2011. It is great to see that such a substantial project has been realized so fast with such a precision and I ex-press my gratitude and pride on behalf of the Executive Board to the whole project team as well as to our part-ners and the local administration for the great support and extraordi-nary result.” For the tar-geted annual capacity of four million tires in the first phase in which Continental invests 240 million euros in total a workforce of more than 800 employees will be established until 2015.

"With the opening of the Continental plant in Kaluga automotive cluster in the region has grown to three dozen companies. Here is a very high value added, because this product will be produced in Kaluga, and our engineers will be able not only to apply their knowledge, but also to improve our products as a result of scientific and technical international cooperation. I am glad that with the successful cooperation of specialists of the Kaluga region and Continental’s experts such a significant project was accomplished successfully in a short time,” said the Governor of the Kaluga region Anatoly Artamonov.

In the city of Kaluga already exists a well-established automotive cluster of the major Euro-pean car producers such as Volkswagen, PSMA, Volvo Trucks, and suppliers such as Magna, Faurecia, Benteller, Gestamp and others. The new tire production site in the region will contribute to rise the number of modern hi-tech productions and will allow to fulfill in its maximum the demand both of the car producers and general car-owners through existing dealers chain.

“The plant output will be sold to tire dealer chains respectively the tire replacement business as well as to the Russian car manufacturers. The key competitive advantage of Continental is not only the local production site but also the fact that we fulfill the highest European quality standards right from the beginning. Russian clients will get products certified by the ISO/TS 16949 standards”, comments Jaron Wiedmaier, Head of Marketing & Sales and General Director of OOO “Continental Tires RUS”. The production portfolio will conist of summer as well as studded and studdless winter tires for passenger cars and light trucks of the brands Continental, Gislaved and Matador. This includes technologies with highest complexity for the production of studded tires with enhanced resistance to precipitation which was used at one other Continental plant in Korbach, Germany, by now.

”I would like to thank the plant staff for its efforts, passion, persistence and great team spirit and to congratulate them with this significant event. Within the last two years the number of staff-members grew from 10 to 500 people, practically in a field where a new modern production site was built, more than 500 trucks of equipment were brought and installed, all the required infrastructure and logistics was created, and each and every employee contributed his and her best to make the project happen according to the schedule and in compliance with highest quality standards. I express my sincere gratitude also to the Administration of the Kaluga region for their constant support to this project and its contribution. This advanced level of cooperation proves once again that Kaluga is a modern perspective and comfortable place for business with an excellent potential of professionals and an outstanding business environment”, concluded Georgy Rotov, Head of Manufacturing and General Manager of OOO Continental Kaluga.

High requirements of Continental to the quality of the products and the production processes demanded serious and comprehensive trainings for the plant staff. All the engineering and administrative specialists of OOO «Continental Kaluga» responsible for the preparation of the production for the launch have had their trainings at the Company’s European operations, were provided with the experience of acknowledged industry experts and are currently applying this experience in the excellent manner.

The expansion especially in the BRIC countries (Brazil, Russia, India and China) is one of the key strategic goals of Continentals tire division for the next decade. Beside of about 350 milion euros per year for the enlargement of existing tire plants Continental is investing one billion euro into additional production capacities all over the world until 2016 with the aim to globally balance the manufacturing footprint. The new production site in Heféi, China was launched in 2011 and is already in the mode of the second phase in whih the extension to an annual capacity of eight million tires is the target. In the meantime also a bicycle plant has been added in Hefei, too. now a tire plant is under construction in Sumter, USA.

Currently Continental is presented by three production sites in Kaluga. Besides the newly opened tire plant OOO «Continental Kaluga», Continental invests in the expansion of production facilities of plant OOO “Continental Automotive Systems RUS” for the production of electronic auto components and elements of fuel distribution. Together with this Continental is finalising the construction of ContiTech plant that will produce air conditioning and power steering systems. This underlines the serious intention of Continental to further broaden the effective partnership with the Kaluga region and to strengthen its positions on the Russian market.

Source: Continental