Continental invests 90 million USD in a new hydraulic hose plant

Continental has announced the construction of its new hydraulic hose plant for industrial purposes in Mexico. The planned investment is of around 90 million USD and is one of the biggest investments for Continental’s Group Sector ContiTech in 2024.

This new facility will complement and increase Continental’s existing manufacturing capacities within the region and will generate in its first stage more than 200 jobs. With a total area of more than 85,000 sqm, it will be ContiTech’s largest location in Mexico, representing approximately the size of 12 soccer fields. The construction of the plant is planned to begin in the second half of this year, with a start of operation expected in the second half of 2025.

“Strengthening our industry business in the Americas region is a focus for us,” explained Philip Nelles, Member of Continental’s Executive Board for the Group Sector ContiTech. “This investment is our answer to the demand and growth of the hydraulic hose market in the region and underlines our strategic approach to become the innovation leader and full range supplier for hydraulic hoses. The new plant will allow us to further expand our hydraulics business with an extended portfolio of hoses for diverse key industries like agriculture, mining, construction, manufacturing, and energy.”

Andreas Gerstenberger, Head of Industrial Solutions Americas, added: “The hydraulic market is the largest hose and fittings market segment in our region. We have been in the hydraulic hose business for over half a century. With our new plant in Mexico, we will double our capacity in this field and address current and new customers in multiple industries, embracing our ‘in the region, for the region’ approach. Also, with its state-of-the art infrastructure including solar panels, process water reuse technologies, SmartFactory tools as well as machinery with high automation and optimal energy utilization, our new plant is perfectly prepared for additional expansion activities in the future.”

The new facility will be Continental’s 22nd plant in Mexico and the second in the state of Aguascalientes. Continental’s operations in the country produce and develop automotive components, rubber products and tires and are exported to different countries, occupying more than 23,000 employees.