ranjit | Feb 19, 2018 | 0
Continental to invest EUR 15 mn to ramp up production Lousado plant
Continental plans to invest EUR 150 million by the end of 2018 in its Lousado, Portugal tyre plant to enhance production capacity.
The investment will not only increase production capacity of passenger tyre from the current level to around 180 million units , but also build agriculture tyre manufacturing plant in Lousado
“We’re investing not only in an increase in overall output, but above all in expansion of our high-performance tire production and in our re-entry into the agricultural tyre segment,” explains Nikolai Setzer, member of the Executive Board of Continental AG responsible for Corporate Purchasing and head of the Tire division. “In a tyre sector that is becoming increasingly diversified, we are aiming to create even more production capacity in the high-performance tyre segment in order to be able to offer our customers a wider range of summer and winter tyres from 17 inches upward. With that in mind, we are targeting both higher output and more efficient processes,” Setzer added. To date, production in Lousado has focused mainly on standard tyres for cars, vans and light trucks.
Expansion plans in Lousado also include setting up a production facility for agricultural tires on the existing site. The cornerstone ceremony took place back in June of 2016 and Continental is to invest some EUR 50 million in the factory. Over the next three years, the plan is to ramp up the portfolio to approximately 100 different tyres for agricultural vehicles.
When the new production facilities for passenger and agricultural tires are up and running, the number of Continental employees in Lousado will increase to a total of 2,000. “For our entire team in Lousado, these substantial investments represent major proof of the Continental Corporation’s faith in us,” says Pedro Carreira, Continental Plant Manager in Lousado. “They document the fact that, in recent years, we have successfully met the many different requirements that we faced, and they provide strong motivation to continue to do so in the years ahead.”
With these investments the Tire division is continuing the systematic pursuit of its Vision 2025 growth strategy, in the context of which well over EUR 3 billion have been invested since the beginning of 2011. By expanding production capacities and investing in research and development as well as in technology projects, by 2025 the aim is both to secure the company a podium position in technological terms and achieve an ideal balance in terms of its global production and sales footprint.