Continental Tire the Americas (CTA) is planning to invest $129m in its Mt. Vernon, Illinois tire facility in order to increase production of tires to meet increasing demands in the US.
The company plans to spend $95m for the expansion of the commercial vehicle tire (CVT) production area, while the remaining $34m will be used to introduce technology and equipment for the mixing building, and a warehouse expansion.
CTA chief executive officer Jochen Etzel said: "This investment will support our efforts to provide an outstanding line-up of passenger, light truck and commercial vehicle tires for our customers."
Truck Tires the Americas executive vice president Paul Williams said that the investment in the CVT production area is adding volume to support the current market, enhancing the company's capabilities for advanced technologies and increasing our ability to anticipate the market demands of the future.
"This investment is further commitment to Continental's strategy for growth in the Americas," Williams said.
The expansion in CVT, which is expected to complete in mid-2015, will increase the production capacity of plant to three-million truck tires per year, while the introduction of equipment for new tire technologies that includes wide base truck tires is expected to complete by 2014.
