CTNA will invest $78 million in Mt. Vernon plant
Continental Tire North America Inc. (CTNA) plans to sink $78 million into its Mt. Vernon, Ill., plant to expand the company's commercial operations and regionalize its commercial tire production.
"The market demand in the U.S. for CTNA's commercial tires continues to grow," says CTNA CEO Matthias Schonberg. "This expansion will help us to serve all of our customers better, faster and more efficiently."
CTNA officials addd that the expansion will free up parent company Continental AG's global truck tire capacity in other markets, including Europe and Asia.
The investment includes new tire building and storage equipment and an addition of more than 150,000 square feet of building space to house the new machinery.
Construction and installation are set to begin immediately, say CTNA officials. The process is expected to be done by the end of next year.
CTNA has already pledged a $70 million to $100 million investment in Mt. Vernon through 2009. More than $84 million of that total has already been funded.