Continental

Continental Invests in Tyre Production

German automotive manufacturer, Continental AG is set to invest more than 500 million euros (AUD $708.8 million) in tyre production, according to German news reports.

German newspaper Frankfurter Allgemeine Sonntagszeitung interviewed Continental’s chief executive, Elmar Degenhart, who stressed that tyre production is an integral part of the group.

“We should have invested more in tyres in the past five years, we are catching up on that now,” said Degenhart.

“We are doubling capacity in Brazil and China is starting up next year. We are also discussing a cooperation in India and are considering our own production in Russia.”

The newspaper did not say over what period Continental planned to make the investment.

Degenhart also made optimistic comments about the company’s 2010 outlook, according to the newspaper. It raised its top-line outlook in July, saying it sees full-year sales growing by about 15 per cent.

“That figure is certainly conservative,” the paper cited Degenhart as saying. Continental is due to report third-quarter financial results on November 3.

Tags: Degenhart