Press Release Continental celebrates the groundbreaking of its tire plant expansion project in Hefei, China Groundbreaking for 3rd tire plant expansion milestone celebrated at Hefei location with authorities, management and employees Investment of around €250 million will boost the plant’s production capacity to around 14 million premium tires and more than double the existing workforce of around 1,150 by 2017 Civil works for Continental’s 3rd tire plant expansion project start in November 2015 Hanover/Hefei, 16 November 2015 – Continental, one of the leading automotive suppliers, tire manufacturers and industrial partners worldwide, celebrated the groundbreaking of its 3rd expansion project of the tire plant located in Hefei, China. Honored guests like Mr. Qingjun Wu, Mayor of Hefei, Mr. Bing Han, Deputy mayor of Hefei, Mr. Xiufa Chen, Secretary General of Hefei City Government, Mr. Burkhardt Koeller, Executive Vice President Controlling Tires and Mr. Philipp Von Hirschheydt, Executive Vice President of Tire Business Unit Replacement APAC Passenger and Light Truck Tires as well as employees and media have been welcomed by Mr. Michael Egner, the General Manager of the tire plant at the site. With the investment of around €250 million in the course of the coming two years, the total investments in Hefei, China will reach around €570 million. The production capacity will increase to around 14 million tires and a substantial amount of new jobs will be created. The civil works will start in November 2015 and expand over 80,000 square meters. This investment is part of Continental’s Tire Division “Vision 2025” long-term strategy in which Continental has since 2008 systematically invested more than €2 billion in the establishment and expansion of global production capacities and high-tech projects for tires. “We are delighted that Continental is continuing its investment in our city”, declared Mr. Qingjun Wu, the Mayor of Hefei. “Since its first ground breaking in 2008, in only 7 years, Continental Tires Hefei Plant has grown very fast. The current investment confirms Continental’s strong vision and confidence in the future business development in China and Hefei as well. The government of Hefei will continue to support Continental”, added Mr. Qingjun Wu, during his speech. -2- “Continental’s tire business has been growing substantially for the past years at global level and Asia is one of our key growth markets. The Continental Tires Plant in Hefei is our first Greenfield project in tire manufacturing in China, which represents a major step that Continental took to enhance its position significantly in the tire industry in China as well as in Asia Pacific region. The continuous investment in the expansion of the plant is a sign of our confidence in Continental’s success in China and Asia”, remarked Mr. Burkhardt Koeller, Executive Vice President Finance & Controlling Tires, honored citizen of Hefei. In the context of the Tire Division’s Vision 2025, along with the annual investments of some €350 million in its existing plants, Continental has earmarked a further €1 billion for the largest special investment program in the history of the Corporation, so that in total more than €2 billion is being invested in laying the foundations for long-term growth, particularly in the BRIC states (Brazil, Russia, India and China) and in the United States. “Since 2008, when we started the Greenfield project for the tire plant, Continental Tires Hefei has developed very fast, marking one milestone after another. In May 2015, we have reached 10,000,000 Passenger and Light Truck tires which were delivered from our plant to the Chinese market. This achievement and the further growth of our plant has only been possible by the joint efforts of our employees and the continuous support of the local government in Hefei, therefore I would like to express my sincere appreciation on this occasion. With Phase III, we will continue to drive innovation and make top quality premium tires for the Chinese customers”, highlighted Mr. Michael Egner, General Manager of Continental Tires (China) Co., Ltd. and the tire plant at Hefei. Continental’s Hefei tire plant was officially opened in 2011 and since then the plant has made special efforts to be a good citizen of the region through proactively investing in environment protection measures and community engagement. The plant is much recognized for its efforts to be a green plant. For example, the production roof is covered with 70,000 square meters solar power panels which provide 5.5 million KWH green electricity each year. Its zero waste water and emission control also sets an example in the industry to protect the environment. Besides environment protection, the plant is promoting cycling safety and driving safety among children and young drivers, and supports educational projects in the local community. *** Your contact Vivian Wei +86 0551 6279 6811 -3- Continental AG Continental develops intelligent technologies for transporting people and their goods. As a reliable partner, the international automotive supplier, tire manufacturer, and industrial partner provides sustainable, safe, comfortable, individual, and affordable solutions. In 2014, the corporation generated preliminary sales of approximately €34.5 billion with its five divisions, Chassis & Safety, Interior, Powertrain, Tires, and ContiTech. Continental currently employs approximately 208,000 people in 53 countries. Continental commenced its business in China in 1994 and has built successful partnership with all major customers in China. So far, Continental has expanded its presence in 26 production locations and 16 R&D centers, representing a workforce of over 23,000 in the country. Continental offers market specific solutions to the Chinese market with all of the corporation's five divisions. www.continental-corporation.com Tire Division As one of the world's leading tire manufacturers with more than 44,000 employees, the Tire Division achieved sales of €9.6 billion in 2013. Today, the division has 24 production and development locations worldwide. The broad product range and continuous investments in R&D make a major contribution to costeffective and ecologically efficient mobility. Passenger Car and Light Truck Tires Continental is one of Europe's leading passenger car and light truck tire manufacturers and is the world's fourth-largest passenger car and light truck tire manufacturer in the original equipment and replacement business sectors. The product development focus of the Continental premium brand is to optimize all safetyrelevant characteristics, while simultaneously minimizing rolling resistance. www.continental-tires.com Sponsorship Continental's Tire division is an official sponsor of the German DFB Cup, Major League Soccer in the U.S.A. and Canada and the UEFA EURO 2016TM in France. www.ContiSoccerWorld.com Media database www.mediacenter.continental-corporation.com www.continental-tires.cn. For more information: Vivian Wei Tina Chen Location Communication Manager Head of Continental Communications China Continental Tires (China) Co., Ltd 1588 Dabieshan Road, Nangang Technology Zone, Hefei 231283, Anhui, China Tel.: +86 551 6279 6811 Mob: +86 157 1551 2266 E-mail: qingxia.wei@conti.cn Continental Automotive Holding Co.Ltd. 538,Dalian Road 200082 Shanghai,P.R. China Tel: +86 21 6080 4551 Mobile: +86 186 1633 0627 Email: tina.chen@continental-corporation.com Your contact Vivian Wei +86 0551 6279 6811