Conti Expanding Mount Vernon, Building New Plant in Russia
On Thursday, May 12, Continental Tire the Americas L.L.C. announced plans to invest $224 million to expand its tire plant in Mount Vernon, Illinois, a project that will add 444 new full-time jobs at the plant. The project, which brings Conti’s total investment in the plant since 2006 to $486 million, will result in a significant increase in tire-producing capacity of nearly 4 million additional passenger and light truck tires annually. About $171 million of the planned investment will be used for new machinery and equipment, while the remaining $53 million will be directed at infrastructure upgrades.
According to Rubber & Plastics News (subscription required), in addition to expansion of passenger and light truck tire capacity, Conti’s commercial vehicle tire division will increase capacity at Mount Vernon by 15% by December 2012, bringing annual capacity to 3.15 million tires per year. The first 5% increase has already been achieved, according to Conti.
In addition to the the Illinois expansion, European Rubber Journal reports that Continental also plans to build a new car tyre plant in Russia. The company reportedly will choose a site by the end of June for a plant expected to be operational by the end of 2013. The plant would have capacity for 4 million units annually and represents an investment of around euro 200 million over the four-year period.