Continental Breaks Ground on its New Plant in Mississippi

United States: Continental A.G announced breaking ground on their new USD1.4 billion truck/bus tire plant in Mississippi. Many political dignitaries and company’s own executives were present during the groundbreaking ceremony including Nikolai Setzer, a member of the company’s Executive Board and head of the company’s global tire business worldwide and Phil Bryant, Mississippi’s Governor.

Further, the production is anticipated to start by the end of 2019, and it is expected to employ around 2,500 people when running at full capacity in around 2020s. According to the company, investment in this plant would be its biggest in the firm’s history.

“The groundbreaking of Continental’s new tire manufacturing plant in central Mississippi marks a significant milestone in the development of the company’s newest state-of-the-art facility,” said Phil Bryant, he further added, “I congratulate everyone involved with this monumental project and look forward to the plant’s progress.”

As per TechSci Research, the decision taken by the company to start their new plant in the United States is a result of increasing demand of tires emanating from the region. Furthermore, the move is expected to expand Continental’s reach in the truck/bus tire segment in the country which is likely to improve the company’s presence in the United Sates Tyre Market.

According to a recent report published by TechSci Research, “United States Tyre Market Forecast & Opportunities, 2020’’, United States automobile market is the second largest automobile market in the world, with a motorization rate (including passenger cars and commercial vehicles) of more than 790 vehicles per 1,000 individuals, in 2014. Increasing disposable income due to strengthening US Dollar, falling oil and food prices, and rising standard of living, are resulting in an increase in production and sales of vehicles in the US. Steady growth in sales and production of automobiles, expanding automobile fleet, and favorable government policies, are anticipated to propel growth in the US tire market over the next five years.