Tech evolution drives Continental Tires' expansion in Asia-Pacific

Nikolai Setzer, a member of the executive board and head of Tire Division, Continental AG, speaks at the new product launch ceremony on Sept 14, 2016, in eastern Zhejiang province. [Photo Provided To China Daily]

Continental Tires has put its global experience and German technology into its new Anhui production base, following the "Vision 2025" strategy, expecting the Asia-Pacific region to drive the company's growth as the world's market is bumpy.

The leading German tire maker's launch of the Generation 6 products - UltraContact UC6 and ComfortContact CC6 - on Sept 12 in eastern Zhejiang province demonstrate Continental Tires' relentless drive to redefine technology for their Asia-Pacific customers.

"Vision 2025" of Continental AG's Tire Division, also known as Continental Tires, will enter its third stage in 2017. It sees Asia-Pacific as the company's key driver for future growth.

The Tire Division expects the Hefei plant, in Anhui province, will help extend advantages in the region, and the Chinese market to double the sales volume to 10 billion euros ($11.2 billion) by 2020.

"We see the Asia-Pacific region demonstrating huge potential and becoming a key driver of Continental Tires' future growth," said Nikolai Setzer, a member of the executive board and head of Tire Division, Continental AG.

"The new products, featuring cutting-edge German technology, is a technology milestone in the Asia-Pacific region and serves as a further testament to our commitment to the region. It takes Continental Tires a step closer to our 'Vision 2025'."

"Continental Tires put global experience and intelligence into the product design, and resulted in the Generation 6 products being perfectly balanced with safety, fuel eficiency, riding comfort and noise control," Setzer told China Daily.

Continental Tires has tailored its next generation of products to the Asia-Pacific region, and started domestic production in Hefei city after starting a local training and testing center - the first in the region.

Continental Tires invested heavily in research and development for the Generation 6 products, and conducted extensive tests to deliver the premium quality product that the brand represents. UltraContact UC6 and ComfortContact CC6 have been designed based on an in-depth understanding of the needs and driving habits of drivers in the Asia-Pacific region.

The Tire Division, having 24 production and development locations worldwide, achieved sales of 10.4 billion euros in 2015. The broad product range and continuous investments in R&D make major contributions to cost-efective and ecologically efficient mobility.

Continental Tires' running shoe outsole products are on display at the event in Jiaxing, Zhejiang province, on Sept 14, 2016. [Photo Provided To China Daily]

In the market, for the market

The Generation 6 products are designed to deliver better driving experience and braking performance, especially on wet ground. They react more precisely while braking, and more accurate response to steering.

"In line with our guiding principle'in the market, for the market', the new Generation 6 products will be produced in plants in the Asia-Pacific region and will follow global standards," Philipp von Hirschheydt, executive vice-president, Passenger and Light Truck Replacement Tires Asia-Pacific, said.

Setzer envisions further expansion in the Asia-Pacific region, especially in China, as a proactive reaction to the possible future. He decided to offer a more balanced portfolio to customers in the region to better suit the local demands.

"We are laying a strong foundation through investments in both technologies and the markets. Continental Tires has never made such a huge investment before as in the Hefei plant," Setzer said.

Continental Tires will double its local productivity in Hefei, Anhui province, to 14 million tires annually by 2019 with investments in capacity and high-tech projects totaling more than 2 billion euros, the company announced in July last year.

The Hefei plant is giving Continental Tires the unique opportunity to create local product packages customized on the understanding of the local customers' demands.

Continental Tires is expected to continue expansion of its product portfolio to further drive market share in the region and to generate more positive value for both consumers and relevant stakeholders.

Continental AG has expanded its presence in 26 production locations and 17 research and development centers, representing a workforce of over 24,000 in the country.

Continental put into operation its Yancheng test center in Jiangsu province, in cooperation with China Automotive Technology & Research Center in July. The test center will mainly support the testing and validation of Continental safety products and systems, including tires and advanced driver assistance systems.

The UltraContact UC6, one of the two Continental Tires' Generation 6 products, is on display at the event in Jiaxing, Zhejiang province, on Sept 14, 2016.. [Photo Provided To China Daily]

Tire business is people's business

Continental AG's Tire Division opened its new training center, covering more than 1,000 square meters in Hefei city's HiTech Zone, to the business partners and employees in July.

The Hefei training center, the first in the Asia-Pacific region with 20 million yuan ($2.99 million) in investment, is part of the company's global scheme, as the unified comprehensive training is one of the critical factors for Continental Tires' success, according to Setzer.

"Continental Tires targets value chain integrations including production, R&D, and professional training, and we have achieved a phased goal in the region," he remarked.

The Hefei training center will help the business partners and relatively young talents from the plant, R&D and sales forces to know the right thing to do in the right way, with the right tools on site.

The company is expecting to have more and more local tire talents ready, to get involved in the swiftly developing Chinese market.

Setzer believes the business on the Chinese market is making changes every day, and recognizes 90 percent of the new business was unexpected.

"Every employee is encouraged to pop up ideas to help the business get better. So we have the culture that everyone has the freedom to act, and the passion to win," he stressed. "Every day we need to learn, and we are transferring the learning into daily life."

ComfortContact CC6, one the Continental Tires' two Generation 6 products, is on display at the event in Jiaxing, Zhejiang province, on Sept 14, 2016. [Photo Provided To China Daily]

Product highlights

UltraContact UC6:

Enhanced driving experience balanced across all performance features

High safety levels maintained even on wet roads

Adaptive Diamond Blend Compound combines grip and mileage

Decreased noise levels

Wide range of sizes

ComfortContact CC6:

Superior comfort

Low noise levels

Flexible compound absorbs road bumps

High mileage performance

Wide range of sizes