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Continental will build a tire plant in the U.S.

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Continental AG plans to build a consumer tire manufacturing plant in the United States.

At the company's annual shareholders' meeting on April 28, 2011, executive board Chairman Dr. Elmar Degenhart told shareholders that the planned plant will help cover rising tire demand in North America.

"These plans are further proof for the depth of the turnaround that the Passenger and Light Truck Tires Division has achieved in the Americas region by means of determination and perseverance.

"Back at the beginning of the new millenium, the passenger and light truck tire business incurred massive losses in the region. Today, it is profitable, and at the same time, a growth area.

"This is due to the division's impressive management performance and the dedicated teams in the Americas," he said. "And the investments we are planning demonstrate that we are convinced of more success!"

A site selection committee has been formed, and is in the early stages of analyzing possible sites. Continental tentatively hopes to have a site selected by the end of the third quarter of this year.

In North America, Continental, through its Continental Tire the Americas LLC subsidiary, manufactures tires in Mount Vernon, Ill., and San Luis Potosi, Mexico.

The Mount Vernon plant has the capacity to produce 40,500 tires a day, according to the 2011 Modern Tire Dealer Facts Issue. Here is a breakdown of the tire capacity:

Passenger: 28,000 a day.

Light truck: 8,000 a day.

Truck: 4,500 a day.

The Mexican plant can produce 20,000 passenger (15,000) and light truck (5,000) tires a day. Continental also produces truck tires in conjunction with Yokohama Tire Corp. at their GTY plant, which is also located in Mount Vernon.

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