ContiTech inks MoU for hose plant in Qingdao, China

ContiTech has signed a memorandum of understanding (MoU) for a new plant in Qingdao, China, mainly for automotive hoses, during a delegation trip through Germany headed by Dr. Guo Shuqing, Governor of Shandong province.

The company plans to invest more than €20 million (approximately Rs 152 crore) as a first step to set up a greenfield plant with an initial floor space of approximately 15,000 square metres in the Sino-German Eco Park of Qingdao West Coast New Area, which is fully supported by the local government.

In the next few years existing production of heating and cooling hose lines will be moved to the new location, which is located only a few kilometres away from the current site, and has a projected annual output of about 15 million low pressure pipes in its first full-capacity phase.

Depending on market development the company intends to further expand the new plant in a timeframe of five years and is expected to be completed by 2020.

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