German company Continental, one of the world's largest automotive groups, has big plans for the Romanian market, under its cost-cutting strategy. Continental, which owns two plants in the Romanian city of Timisoara, will increase the production capacity of its tyre factory from 8 to 10 million units annually and will double the output of transmission belts this year. Moreover, the Germans are planning to open an ABS (Anti-lock Braking System) factory in Sibiu and another plant in Timisoara (making pressure hoses).
"We are still in the middle of the necessary procedures for the investment in Sibiu. If everything goes according to our plans, we will open a plant making automotive electronic components in this city. The only problem (and it's not a small one) is bureaucracy," said Vesna Milencovic, the German group's PR coordinator for Romania. The investment will be made by the Continental Automotive Systems division, specialised in manufacturing brakes, ABS and ESP systems and sensors. Milencovic did not disclose the investment's value.
Another arm of the German group, ContiTech, specialising in transmission belts, hoses and profiles will also invest in a plant, to be located in Timisoara. Milencovic made no comments about this investment, but Continental officials had said last year they would invest more than ten million euros into a pressure hose factory.
ContiTech last year dedicated a transmission belt factory in Timisoara.
"We will invest 6 million euros in this plant, in three stages, until 2005. Last year, the factory could make 1 million belts annually, but the capacity will double this year," Milencovic also said. The final stage of the expansion process will take place in 2004, when the factory will start producing 4 million transmission belts annually. The factory now works with companies such as General Motors and BMW.
Continental's largest investment in Romania is still its Timisoara-based tyre plant, where 100 million euros were invested three years ago.
"Output amounted to 1.19 million tyres in 2001, only to triple in 2002, to 4.6 million. We aim to work at full capacity this year - 8 million tyres," Vesna Milencovic added. According to the PR official, the company has recently started investments aimed to increase the production capacity to 10 million tyres annually.
The Timisoara-based plant is only working for the European markets at this point, with the group's tyres actually imported to Romania.
"We are now making brands such as Continental, Barum, Uniroyal, Semperit, Gislaved, Mabor, which are mainly aimed at Central Europe. Continental products are brought to the Romanian market by importers, and last year accounted for 20% of the imports of tyres," Continental 's official concluded. ionut.bonoiu@zf.ro
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