Continental pursues Russian growth strategy with new powertrain plant

By / 12 years ago / News / No Comments

Representing an investment of around €20m, the plant will be operational from 2014 and will increase Continental's capacity to 
produce engine control units, fuel supply and injection system 
components.

‘The Russian vehicle market is one of the fastest-growing 
markets in the world. This is why Continental is also set on expanding 
its operations here and intends to position itself as the world's leading 
supplier of electronics,’ said José Avila, head of the Powertrain 
Division and member of the Continental AG Executive Board.

The company added that over the next few years, stricter emissions standards will significantly 
increase the requirement for economical, low-emission injection 
systems; from the start of this year, new cars must meet the 
Euro 4 standard. Euro 5 will apply from 2015.

"It is precisely in 
emerging markets, the Russian automotive market being one such 
market, that there will be a demand for inexpensive yet high-
performance systems. Our innovative 32-bit Easy-U engine control 
unit is exactly the right product to satisfy this demand", said 
Wolfgang Breuer, head of the Engine Systems Business Unit at 
Continental Powertrain.

The “Kaluga South” 
industrial park is located in the immediate vicinity of Volkswagen's, 
Volvo Truck's and PSA's assembly plants. 



The investment represents partial implementation of an agreement 
made with the regional government in the summer of 2011. 
Other elements of the agreement will see the establishment of a new tyre plant at a cost of €240m by 
Continental's Rubber Group. This will open at the end of the year and will initially allow the 
annual production of four million tyres. In addition, ContiTech is constructing a plant at a cost of over €10m to produce components for air conditioning systems 
and power steering units, with production start-up planned for 
the end of the year. 

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Natalie Middleton

Natalie has worked as a fleet journalist for nearly 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day. Natalie edits all the Fleet World websites and newsletters, and loves to hear about any latest industry news - or gossip.

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