Continental said it has chosen a site in Mississippi for a new plant to drive the future growth of its tire business in the North American market.
German automotive supplier Continental AG said on Tuesday it reached an agreement with the state of Mississippi to buy a site for the construction of a commercial vehicle tire plant. Continental has revealed that it plans to invest around 1.4 billion dollars in the new location and also to employ 2, 500 people when the plant reaches full capacity in the next decade. The new manufacturing facility will be located at a greenfield site nearby the city of Clinton in Mississippi, the supplier mentioned in a statement. “The project is part of our global growth strategy. In a first step the new plant is especially addressing our commitment to grow our commercial vehicle tire business in North America,” said Nikolai Setzer, Continental’s Executive Board Member for the Tire business.
A date for the start of construction has not yet been announced, but the company expects to break ground in the next several months in cadence with market demands. The production of commercial vehicle tires is planned to start by the end of 2019. The manufacturer currently has ten truck and bus tire production sites worldwide and aside from the US, Continental’s Tire Division has recently expanded production capacity also in Russia, China and Europe to support the global demand on a long-term basis.