11 November 2012

ContiTech to Invest €17 Million in New Hose Plant in Brazil

- Construction scheduled to commence in spring 2013 

Hanover - 08 November 2012 - ContiTech will next year invest around EUR 17 million in the construction of a new plant in Brazil to produce hoses for use in oil production and gas extraction. The company has now signed the purchase agreements for a suitable plot of land in Greater Rio de Janeiro. Construction is scheduled to commence in spring 2013, with production set to begin one year later. 

"The decades to come will see Brazil develop new and ever deeper oil and gas reserves as well as construct numerous floating production, storage and offloading units (FPSOs). This will mean extremely strong growth in the South American market for our floating and drilling hoses," says Matthias Schönberg, Head of ContiTech Fluid Technology. "To enable us to offer our customers locally produced hose systems and a corresponding range of services, we are constructing the new plant in the same location as our customers' production locations: In Macae." 

The new South American plant is a key strategic addition to ContiTech Fluid Technology's global production network, complementing the established Oil & Marine plants and engineering offices in the UK, Hungary, the US, and Germany. The segment forms part of the ContiTech Fluid Technology business unit, which is ContiTech's largest business unit with around EUR 1.3 billion in sales and 14,000 employees. 

ContiTech has been running production operations in Brazil for around 15 years. Today, some 800 employees at sites across the country produce a range of products, including drive belts, hose line systems, vehicle engine mounts, and conveyor belts for the mining industry. 

Source: Continental