Continental pursues Russian growth strategy with new powertrain plant
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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