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Continental opens plant in Brazil

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Continental AG opened a plant in Brazil yesterday that will produce 9,000 passenger tires a day by the end of 2006 and 14,000 units during the first half of next year.

The factory is located in Bahia, a Brazilian state.

"The new low-cost production capacities play a key role in our concept for the future passenger tire business in the loss-making NAFTA region," says Continental Chairman Manfred Wennemer.

"At the same time, the capacities allow for profitable growth."

The new plant also will begin building commercial tires this July, with an estimated daily output of 1,000 units by the end of the year and as many as 1,700 units a day by the end of 2007.

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