March 3 (Bloomberg) -- Continental AG, Europe’s second-largest tiremaker, plans to invest more than 1 billion euros ($1.38 billion) by 2016 to upgrade products and expand manufacturing outside its home region.
A plant at Modipuram, India, will begin operating this year, following the start of a new production line in Sumter, South Carolina, in January and a factory in Kaluga, Russia, last October, the German company said today in a statement. Volume will increase by more than 20 million tires “in the run-up” to 2016, it said.
Continental, which is also Europe’s second-biggest maker of car parts, is targeting a fifth consecutive year of record sales in 2014 and has returned to making acquisitions after working to reduce debt following the 2007 purchase of Siemens AG’s car-electronics unit. The Hanover-based manufacturer is scheduled to release earnings figures for 2013 on March 6.
To contact the reporter on this story: Tom Lavell in Frankfurt at firstname.lastname@example.org
To contact the editor responsible for this story: David Risser at email@example.com