ContiTech,a division German autoparts maker Continental,has acquired the business of Taizhou Fuju Rubber Belt Manufacture in China.
This move by the company is aimed at expanding its drive belt business in China.The transaction will shift around 100 employees from Fuju to ContiTech.
Established in 1993,Taizhou Fuju manufactures drive belts for the automotive replacement business.It has recently completed the construction of a 33,000m2 production plant in Sanmen,Zhejiang province.
Moving further,ContiTech will use this new plant and expand it with new machines and more space for future expansion.
It will produce V-belts and V-ribbed belts for the automotive OEM market,the automotive aftermarket at the Sanmen plant starting spring 2014.
Continental executive board member Heinz-Gerhard Wente and ContiTech division head said that this acquisition enables them to achieve further growth in China.
"In a very short time frame,we are expanding our production capacities in China and strengthening our drive belt business unit,"Wente added.
Currently,ContiTech operates more than ten plants in China and employs around 2,500.
