Continental Breaks Ground on New Tyre Plant in Russia

Continental will make an initial investment of around €240 million in the Kaluga plant for an annual capacity of 4 million tires, with the first passenger car tyres scheduled to roll of the production line towards the end of 2013.

“We are extremely confident that the new plant in Kaluga will do a lot to give us long-term market leadership in Europe. We view Russia as one of the future’s most significant single markets, with substantial double-digit growth rates in vehicle registrations. We intend to consolidate our position here as a top tire manufacturer in the original equipment and replacement business,” explained Nikolai Setzer, head of the Tire division and Member of the Continental AG Executive Board.

At the new plant, the company will primarily manufacture summer and winter tires under the Continental, Gislaved, Barum and Matador names. These are the key corporate brands on the Russian market.

Continental’s long-term plans in Kaluga will allow for build-up of annual capacity to eight million passenger and light truck tires in the near future.