Continental starts up Heifei plant extension

Continental AG, the German tire and automotive components giant, started up operations at its 250 million euro ($271 million) factory expansion in Hefei, Anhui province, on Tuesday. After completion of the latest third phase, the Hefei plant has seen a combined investment of 570 million euros. Its annual production capacity will be increased to 14 million tires in two years from the current 8 million tires. Its employees will also double to more than 2,700. As Continental’s only factory in China, the Hefei plant, which mainly produces passenger and light-truck tires, is different from the company’s other Asian plants in that its production mainly stays in China.