February 8, 2016 – Press Release
Continental Selects Site in Mississippi for New Plant to Drive the Future Growth of Its Tire Business
- Production of commercial vehicle tires for North America
- Commitment for long term investment totaling approximately $1.4 billion and providing 2,500 jobs
- Project is part of the growth strategy of leading technology company Continental
Jackson, Miss. – Feb. 8, 2016. The leading technology company Continental has selected a site in Mississippi for a new plant to drive the future growth of its tire business in the North American market. Continental Tire the Americas, LLC (CTA) has reached an agreement with the state of Mississippi to purchase a site for the construction of a commercial vehicle tire plant. Continental has committed for a long term investment totaling approximately $1.4 billion and employing 2,500 people when the plant reaches full capacity in the next decade. The new manufacturing facility will be located at a greenfield site in Hinds County off of Interstate 20, two miles from Clinton and 20 miles from Jackson.
“The project in Hinds County, Mississippi, is part of our global growth strategy. In a first step the new plant is especially addressing our commitment to grow our commercial vehicle tire business in North America,” said Nikolai Setzer, Continental’s Executive Board Member for the Tire business. “The announcement of a new tire plant in the U.S. is the second in just five years for Continental. We thank the state of Mississippi, Hinds County and the City of Clinton and Governor Bryant for his leadership in bringing us to the Jackson area, and we look forward to a strong business relationship for years to come.”
CTA’s business growth has consistently exceeded the market over the last five years and the company continues to see customer demand for its products -- both new truck and bus tires as well as retreads which are growing beyond the company’s existing capacity.
“Today is truly a great day for the state of Mississippi and our thriving automotive industry as we officially welcome Continental to Hinds County. The company’s decision to bring 2,500 new jobs to Central Mississippi speaks volumes about our dedication to developing the workforce of the future, as well as a business environment that spurs growth, expansion and innovation,” Gov. Bryant said. “I thank Continental’s Executive Board Member Nikolai Setzer and the entire Continental team for choosing to invest in Mississippi and our citizens. The positive impact this manufacturing plant will have on the region, the state and our automotive industry will be felt for many years to come. I look forward to the company’s success and longevity in Hinds County.”
“The team has worked hard over the past several years to add value to our commercial fleet customers by expanding our service offerings in order to lower the overall operating costs,” said Paul Williams, Executive Vice President, Continental Commercial Vehicle Tires, the Americas. “As a result, we continue to enjoy solid growth in our business and a demand for more commercial vehicle tires. As we plan our growth, we have found this site provides significant advantages for a future tire plant in terms of its large skilled workforce, as well as its deal location and infrastructure. The state of Mississippi has developed an outstanding business climate and this site met all of our needs for projected growth in the near as well as in the longer term. We look forward to providing well-paying jobs with excellent benefits to the people of the Jackson area within the next few years.”
A date for the start of construction has not yet been announced, but the company expects to break ground in the next several months in cadence with market demands. The production of commercial vehicle tires is planned to start by end of 2019.
The international automotive supplier, tire manufacturer, and industrial partner Continental has invested more than $1.5 billion in the past five years for manufacturing, technology, facilities and product development in the U.S. Part of this investment has been the expansion of Continental’s tire plant in Mt. Vernon, IL and the new Sumter, SC facility. Aside from the U.S., Continental’s Tire Division has recently expanded production capacity also in Russia, China and Europe to better serve global demand on a long-term basis.
Continental will begin site development in 2016 and expects to begin construction of the plant in 2018. The site is nearly 1,000 acres and is by size and location well suited for setting up a gradually growing tire plant.