On July 1, 2011, Continental announced plans to build a new tire plant in Kaluga, Russia. Kaluga is a city of just over 325,000 inhabitants that lies 170 km southwest of Moscow.
Nikolai Setzer, head of the Passenger and Light Truck Tires division and member of the Executive Board of Continental AG stated in that Conti planned to invest a total of more than one billion euros over the next four years in order to build up additional passenger tire capacity. The site in Kaluga was chosen for its good infrastructure, central geographical location, and the good experience Continental has already had with the existing automotive electronics plant in the location.
Some €220 million will be invested in the new plant, with production slated to start at the end of 2013. Capacity will total about 4 million tires per year in its first full capacity phase, while employment will total about 400 by the end of 2013. The Russian government has promised to support the new site. Continental, as a major tyre producer serving the European OEMs, is thus following leading vehicle manufacturers like Volkswagen, for example, who have already had manufacturing operations in Kaluga for several years now. Construction will begin at the end of 2011.