From Tire Review

MT. VERNON, Ill. – Continental Tire the Americas has undertaken a massive expansion of its lone U.S. tire plant, a $224 million project that will add some four million consumer tires to its annual output.

With the assistance of numerous state, county and local officials, and in the presence of numerous key customers, CTA CEO Matthias Schoenberg officially announced the expansion project yesterday at ceremonies held even as heavy equipment nearby began preparing an area for the 438,000-square-foot addition.

CTA said increased demand for tires in North and South America was “the driving force behind this investment.”

The expansion will add 444 new jobs to the facility, taking total employment there up to more than 3,000 people. Schoenberg said CTA’s decision to expand Mt. Vernon came because of the employees. “We are very proud of our employees here,” he said during his speech. “They are the ones whop really earned this investment.. They are incredibly important to our success.”

“Today’s announcement would not have been possible without the support of the state of Illinois and Governor Pat Quinn,” said Schoenberg. “Illinois offered us competitive incentives to create these well-paying jobs with excellent benefits for the people in southern Illinois.“

That incentive package included $22 million in tax credits, training funds and other incentives, according to Dan Seals, assistant director of the Illinois Department of Commerce and Economic Opportunity, who was on hand representing the governor.

Continental said the expansion will be producing tires by December 2012. Of the $224 million earmarked for the project, $171 million will be directed for new machinery and equipment, and $53 million will be directed for building and infrastructure.

Originally built in 1973 by the then General Tire & Rubber Co., which was acquired by Continental AG in 1987, the Mt. Vernon plant is perhaps the largest in North America, at slightly more than 2 million square feet – more than 70 acres – under roof. The plant currently produces some 27,700 passenger and light truck/SUV tires per day and another 8,100 medium truck radials per day. It is also home to CTA’s truck tire technical center.

A previously announced expansion at the plant is adding medium truck capacity to the tune of 15 percent, for an annual output of 3.15 million truck tires.

Since 2006, CTA has invested $277 million in the Mt. Vernon plant; the new announcement takes that investment to around $500 million.