Continental AG has broken ground on a new plant on Hefei, China, the company's first passenger and light truck tire manufacturing facility in that country.
Continental will invest 185 million euros in the plant, which is scheduled to be completed by 2010.
The plant will produce four million tires per year initially. Production will eventually increase to 10 million units per year.
"This will be a next step forward to achieve our goal of strengthening our Asian business," says Heinz-Gerhard Wente, a Continental board member.