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5. Continental Group (China) Business Report FY ended Dec. 2015

Continental Group (China) Business Report FY ended Dec. 2015

Recent Development

-Continental AG announced that Continental Automotive Changchun Co., Ltd. produced its 20 millionth engine control unit on August 25, 2015. (From a press release on September 14, 2015)

-Continental Group (China) announced that its Wuhu Plant began mass-producing its air-assisted SCR urea injection system on August 6, 2015. Production is performed on a newly constructed production line that is capable of producing over 100,000 units of these products per year. The company’s SCR urea injection system achieves an average particle size of approximately 30 microns. The system can integrate the functions of engine control systems, engine condition detection systems, injection volume measurement systems, heat control systems, and failure diagnosis systems. (From news releases issued by multiple sources on August 17, 2015)

New Plant

-Huayu Continental Brake Systems (Chongqing) Co., Ltd., a new joint venture between Huayu Automotive Systems Company Limited and Continental Automotive Holding Co., Ltd., broke ground for its 84,000-square-meter-facility in the Chongqing Liang Jiang New Area. The first phase of the construction project will include a plant with a floor area of approximately 25,000 square meters. This plant is expected to be completed and begin operating in February 2017. The second phase of the project is scheduled to be completed in 2022 and will increase the plant's annual production volume to CNY 2 billion. The joint venture will produce and assemble brake systems for automakers such as Changan Ford and Great Wall Motor. (From news releases issued by multiple sources on February 24, 2016)

-Continental announced that the Company and HUAYU Automotive Systems Company Limited will establish Huayu Continental Brake Systems Co., Ltd., a brake production joint venture, in the Chongqing Liang Jiang New Area, China. The new plant will cover over 80,000 square meters, and will produce brake calipers, vacuum boosters, electric parking brakes, and other brake products. Investment in the first phase of the construction project is expected to reach CNY 600 million. The joint venture will hire over 600 people, and production operations are scheduled to begin in the fall of 2016. (From news releases issued by multiple sources on June 11, 2015)


-Continental announced that it will launch the third phase of its plant expansion project in Hefei, Anhui province, China. The company has already invested CNY 250 million in the Hefei Plant, and another CNY 250 million is scheduled to be invested during the third phase. Currently, the plant is able to produce 5 million passenger car tires per year. When the third phase is completed, its annual passenger car tire capacity is expected to increase to 14 million units by 2019. (From a press release on June 3, 2015)

-ContiTech AG announced that it has signed a memorandum of understanding on a new plant in Qingdao, Shandong Province, China, mainly for automotive hoses. The company plans to invest more than EUR 20 million (approximately RMB 200 million) for the first step and to set up a greenfield with an initial floor space of approximately 15,000 square meters. In the next few years existing production of heating and cooling hose lines will be moved to the new location, which is located only a few kilometers away from the current site, and has a projected annual output of about 15 million low pressure pipes in its first full-capacity phase. Depending on market development the company intends to further expand the new plant in a timeframe of five years and is expected to be completed by 2020. Currently, ContiTech produces and sells rubber hoses and hose assemblies for the automotive industry, with more than 500 employees in downtown Qingdao, mainly for domestic car manufacturers in China and in the Asian Pacific region. (From a press release on July 19, 2016)

-Benecke-Kaliko, part of ContiTech AG, has officially opened a new plant in Changzhou, Jiangsu Province, China to manufacture its automotive interior materials Acella Eco and Acella Eco green. Series production has been running since the end of 2015 with an approximately 100 workforce; 50 more jobs are to be added over the next few months. The company has invested EUR 40 million in the first phase of the expansion. The new plant operated by Benecke Changshun Eco Trim (Changzhou) Co., Ltd. will produce around 10 million square meters of the surface material Acella Eco annually. It is mainly used for vehicle seats and arm rests. The new plant has doubled the company’s capacity for Acella in China. A second expansion phase for the new facility is planned if demand continues to rise. (From a press release on March 10, 2016)

-The Company announced that ContiTech Division's Benecke-Kaliko Group has held a groundbreaking ceremony for its new plant in Changzhou, China. The plant will be operated by Benecke Changshun ECO Trim Co., Ltd., a joint venture between Benecke-Kaliko and Jiangsu Changshun Group Co., Ltd. The facility will produce Acella Eco, a low CO2 emissions and allergen-free material for automotive interior components. As the material meets tighter environmental restrictions on in-vehicle components, demand in the Chinese market is growing. The Changzhou facility will be Benecke-Kaliko's second production base for the Acella Eco in China, following its existing plant in Changshun. Benecke-Kaliko will invest EUR 40 million in the first phase of the construction plan, which will be the company's largest-ever investment project in China. The new plant will cover 24,000 square meters and is expected to hire 250 people. (From news releases issued by multiple sources on January 23, 2015)

Contract

-The Group announced that it will mass-produce its 3.5-inch color liquid crystal instrument panels for Geely Automobile’s Borui. These instrument panels were designed based on the MCU platform concept. They will be produced by Continental Automotive Wuhu Co., Ltd., which developed these products locally for the first time. (From a press release on July 10, 2015)

Come into Operation

-The Group announced that its Tianjin Plant began producing plastic mechatronic control units for automotive transmissions. The control units are high-precision metal-plastic composites integrated with an electronic system. The technology helps reduce product weight and size and maintain high quality. (From news releases issued by multiple sources on July 20, 2015)

Strategic Cooperation

-Continental Group (China) and China Automotive Technology & Research Center (CATARC) announced that they have signed an agreement to closely collaborate in areas including automotive security, environmental protection, and energy saving. (From news releases issued by multiple sources on January 12, 2016)

R&D Center

-The Group has 16 R&D centers in China.

Major R&D Centers

-Continental AG announced that its test center Yancheng in Jiangsu Province, China has officially opened. In cooperation with China Automotive Technology & Research Center (CATARC), the test center Yancheng will mainly support the testing and validation of Continental safety products and systems, such as electronic and hydraulic brake systems, advanced driver assistance systems (ADAS) and tires. The test center Yancheng occupies 2,500 square meters in phase one. (From a press release on July 11, 2016)

-Continental Group announced that it will establish an R&D center in Chongqing, China to develop new products and solutions in the areas of in-vehicle electronics, new energy vehicles, and industrial products. The center will begin operating at the beginning of 2018, and is expected to employ 400 engineers by 2020. (From news releases issued by multiple sources on June 30, 2016)

-Continental AG opened a new Research and Development Center for tires on the site of its tire plant in Hefei, Anhui Province, China at the end of March 2015. At the new Research and Development Center in Hefei, summer and winter tires for the APAC region will be developed and tested. The initial construction phase, on an area of around 6,000 square meters, has created capacity to machine-test some 6,000 tires a year and represents an investment volume of over EUR 4 million. Plans for a second phase are already being drawn up to generate capacity for an additional 1,000 tires to be tested. (From a press release on April 24, 2015)