Automotive components manufacturer Continental will invest several tens of million of euros in expanding the tyre plant in Timisoara by building a new section for processing of raw materials - masterbatch.
Company representatives did not wish to specify the exact value of the investment, but considering an average investment into such a section, its value could amount to 50 million. This adds to a 20 million-euro investment in completing an office building that will accommodate 500 employees.
"We continue to implement the Timisoara plant's long-term strategy. This investment proves our commitment to this plant," said Thierry Wipff, manager of Continental's tyre plant.
The construction of the raw material processing plant is planned for the next two years, and is set to generate 200 jobs (engineers, operators) on medium term, according to Continental information.
"At first we will supply raw material only for the tyre plant in Timisoara and then, for other plants, depending on the needs. The investment in not crisis-dependent and we want to show that Timisoara is very important to us on long term," said Alexander Luehrs, general manager for press relations of Continental's tyre division.
The new section will fully integrate production of the plant with an almost 14 million-tyre production capacity in 2008, as well as contribute to a rise in cost competitiveness.
At the end of last month, Continental completed the construction of a 9,000 square-metre office building in Iasi, worth 20 million euros, where 500 employees of the Research and Development Centre will work, who come from the Siemens VDO division. German manufacturer Continental took over Siemens's VDO automotive parts division more than a year ago in the wake of an 11.4 billion-euro transaction.
Continental representatives say the effects of the crisis are still apparen
