Continental this week officially broken ground at the site of its new tire plant near Clinton, Mississippi. The ceremony, attended by federal, state and local governmental officials, marked the beginning of the construction process, which is expected to be complete in 2019.
Continental has committed for a long-term investment totaling approximately $1.4 billion and employing 2,500 people when the plant reaches full capacity in the next decade. The new manufacturing facility will be located at a greenfield site in Hinds County off of Interstate 20, two miles from Clinton and 20 miles from Jackson. Continental expects to begin physical construction of the plant in 2018. The site is nearly 1,000 acres and is by size and location well suited for setting up a gradually growing tire plant. The production of commercial vehicle tires is planned to start by the end of 2019.
“Building this new facility in Mississippi is a critical part to our growth strategy for Continental Tire, known as Vision 2025,” said Nikolai Setzer, member of Continental’s Executive Board and head of Continental’s global tire business worldwide. “This is the first new plant, globally, for the truck tire business in more than 10 years. We are convinced that the state of Mississippi provides the best options for Continental to grow our tire business.”
“This plant is a significant step in addressing our commitment to grow our commercial vehicle tire business in North America,” said Paul Williams, executive vice president, commercial vehicle tire, the Americas. “We thank the state of Mississippi, Hinds County and the City of Clinton, the Mississippi Development Authority and Governor Bryant for his leadership in bringing us to the Jackson area, and we look forward to a strong business relationship for years to come.”
Continental says its growth in commercial vehicle tires has consistently exceeded the market over the past five years and the company continues to see customer demand for its products – both new truck and bus tires as well as retreads, which are growing beyond the company’s existing capacity.
Not including the planned investment in Mississippi, Continental has invested nearly $2.5 billion in the past decade for manufacturing, technology, facilities and product development to grow its tire business in the Americas. Part of this investment has been the expansion of Continental’s tire plant in Mt. Vernon, Illinois, and the new Sumter, South Carolina, facility.
