Continental invests in electronics facility in Russia

Continental considers Russia a focus market of powertrain technology. By opening a new manufacturing line at its Kaluga plant (200 km South of Moscow) the company is underlining its growth plans. Once fully operative, this highly automated, state-of-the art production line can deliver up to 500,000 fuel supply units (FSUs) per year. Typically FSUs are mounted inside a vehicle’s fuel tank where they combine a number of functions in a single compact unit, which comprises electronics and mechanical components. José Avila, Head of the Powertrain Division and Member of the Continental AG Executive Board, said: “Russia is very important for our powertrain activities. That is why we are now preparing to manufacture yet another Continental product locally at a later stage. So fuel supply units will definitely not be the last step within our long-term strategy.” The FSUs have been produced at Kaluga since November 2012. They were previously imported to Russia from other markets. Christian Kögl, Head of Continental Powertrain Russia and CEO of Continental Automotive Systems RUS, said: “Our new manufacturing line is our response to the particularly strong demand for high quality automobile components in Russia. Electronics and mechatronics are essential for reliable vehicle technology that is rich in function.” As of end of November 229 employees work at the Kaluga site for the Automotive Group. They manufacture electronic products, such as immobilizers or printed circuit boards for instrument clusters. As well as expanding the production of FSUs in Kaluga, Continental Powertrain is investing in new production facilities for engine control units, with start of production scheduled for 2014. The manufacturing area is close to the assembly plants of the Automobile Cluster in Kaluga, where VW, Volvo Truck, and PSA are located. At the end of 2013, a new Continental tire plant with an annual capacity of four million tires is scheduled to open for business (representing an investment of around €240 million and creating some 400 jobs). At the same time, the ContiTech Division is investing approximately €13 million in a new plant for the production of air-conditioning and power steering lines in Kaluga, with start of production also slated for the end of 2013. By the end of 2012 there will be about 400 Continental employees at the Kaluga location.