Hanover – November 4th, 2016. Continental, the worldwide premium tire manufacturer and technology company, has yesterday officially broken ground at the site of its new tire plant near Clinton, Mississippi, in the United States. The ceremony, attended by state and local governmental officials, marked the beginning of the construction process, which is expected to be completed in 2019.
Continental has committed for a long term investment totaling approximately $1.4 billion and employing 2,500 people when the plant reaches full capacity in the next decade. The new manufacturing facility will be located at a greenfield site near the town of Clinton, 20 miles from Jackson, the capital of Mississippi. Continental expects to begin construction of the plant in 2018. The site is more than 400 hectares and is by size and location well suited for setting up a gradually growing tire plant. The production of commercial vehicle tires is planned to start by the end of 2019.
“Building this new facility in Mississippi is a critical part to our growth strategy for the Tire division of Continental, known as Vision 2025,” said Nikolai Setzer, member of Continental’s Executive Board and head of Continental’s global tire business worldwide. “This is the first new plant, globally, for the truck and bus tire business in more than ten years.”
With this investment, Continental is continuing the implementation of its ambitious growth plan for the commercial vehicle tire business. Dr. Andreas Esser, Executive Vice President and Head of the Business Unit Commercial Vehicle Tires, illustrated the reasons for building this new production site: “The new plant brings us closer to our customers. We had other major investments before but Clinton is the biggest investment to date. We are able to make this large investment due to the success of our business unit and because of the dedicated and successful work of our workforce both in the Americas and worldwide.”
“This plant is a significant step in addressing our commitment to grow our commercial vehicle tire business in North America,” said Paul Williams, Executive Vice President, Continental Commercial Vehicle Tires, the Americas. “We look forward to strong business relationships both with state and local authorities as well as with our suppliers. With the new plant, we have the best environment to even better serve our customers in the Americas.”
Continental’s business growth in commercial vehicle tires has consistently exceeded the market over the last five years and the company continues to see customer demand for its products – both new truck and bus tires as well as retreads – which are growing beyond the company’s existing capacity.
Not including the planned investment in Mississippi, Continental has invested nearly $2.5 billion in the past decade for manufacturing, technology, facilities and product development to grow its tire business in the Americas. Globally, Continental’s other major investments in its commercial vehicle tire production have been the announced expansions of the plants in Lousado (almost €50 million) this year, Puchov (€100 million), Otrokovice (around €165 million), and Mt. Vernon (around €70 million) in 2013.