Continental will expand its hydraulics business in North America with a new hydraulic hose production facility that will be built in San Luis Potosi, Mexico.
The planned investment is worth more than $40 million. The new facility will provide additional wire braid and wire spiral capacity to support growing needs across North America.
“Over-proportional growth in North America is a focus for us,” said Andreas Gerstenberger, head of Continental’s global Industrial Fluid Solutions business area. “We have many successful facilities in the region that will be complemented with this investment thanks to additional production capacity. The new facility will allow us to further expand our hydraulics business with the most compelling portfolio of hoses available and continue to strengthen our commitment to our customers and the North America region. It underlines our strategic approach to be the top performer in our markets.”
Hydraulics products support many key industries, including agriculture, construction, energy management, commercial and off-highway vehicles, and manufacturing.
The production facility will create approximately 150 new jobs. The investment will help to increase regional manufacturing capabilities and supply chain efficiencies. It creates multi-location capabilities across the region and is a part of Continental’s commitment to growth in North America.
By combining innovative processes and state-of-the-art machinery, the facility is designed to achieve the highest-possible manufacturing efficiency. Industry 4.0 standards, which connect production with modern information-and-communication techniques, will be applied to connect and integrate 100 percent of the machinery on site.
Construction of the facility is expected to commence later this year. Operations are expected to start in 2024.
Source: Continental
