Increasing demand for the Continental and General
lines of car and light truck tires in North and South
America is the driving force behind a $224 million
investment being made at the firm’s plant in Mt.
Vernon, Ill.
The project is expected to create 444 new full-time
jobs to be filled within the next three years as part
of the company’s comprehensive global growth strategy
for its tire operations.
“Illinois offered us competitive incentives to create
these well-paying jobs with excellent benefits for
the people in southern Illinois,” says CEO Matthias
Schoenberg. He cites the passage last week of the
Land of Lincoln’s Senate Bill 4 as being key to
accomplishing the deal.
“Creating jobs and encouraging investment in Illinois
is strengthening our state's economic recovery,” says
Gov. Pat Quinn, who signed the legislation into law.
“Continental’s decision to invest in Mt. Vernon will
create jobs and make a lasting impact throughout this
region, leading to further private-sector growth and
economic development.”
Of the $224 million destined for the project, $171
million will be for new machinery and equipment, and
$53 million will apply toward building and
infrastructure; plant capacity will increase by
nearly 4 million tires per year.
The heightened capacity planned for passenger and
light truck tires division is being also replicated
by the commercial vehicle tire division, which is
increasing capacity in Mt. Vernon by 15 percent,
bringing capacity to 3.15 million tires per year by
December 2012. The first 5 percent increase has
already been achieved.
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"This significant investment is a reflection of (the
company’s) ongoing commitment to the city of Mt.
Vernon and the state of Illinois and recognition of
the superior work being done here by our highly
skilled team,” says Benny Harmse, the facility’s vice
president of manufacturing.
Employment at the plant has grown by about 400 jobs
since 2006, bringing the current plant employment to
more than 2,500. The additional 444 jobs will bring
total plant employment to nearly 3,000 in the next
three years.
The firm “is experiencing significant growth and
demand for its tires throughout the region,” says
Schoenberg. “Adding production capacity to meet this
demand was essential. And, the Mt. Vernon employees
earned this investment as they continue to prove that
they are competitive on a global level.”
The business growth is highlighted by a nearly 7
percent increase in total volume for the passenger
and light truck tire business in the Americas region
within the past three years, leading to significantly
increased profitability across the region.
In March Continental announced a $210 million
investment to expand production capacity at its tire
plant located in Camacari, Bahia, Brazil. The
investment will create 400 new jobs and double
capacity.
In April the company announced that funding was
approved for a greenfield tire plant in North America
– another major element of Continental’s
comprehensive growth strategy in the Americas.
“While we don’t have any details to share at this
time regarding the potential new plant in North
America, we hope to have an announcement to make
later this year,” Schoenberg says. “With all this
activity in the region I am confident that
Continental Tire the Americas will continue on this
successful path of providing our customers in North
and South America with a broad selection of
outstanding tires for their cars and trucks.”
For more information, visit www.conti-
online.com.
