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Continental to build near US$90mn hydraulic hose plant in Mexico

Continental has announced, together with the governor of Aguascalientes, plans to build a new hydraulic hose plant in Mexico for industrial purposes. The planned investment is worth around US$90mn and will be one of the biggest 2024 investments in Continental's ContiTech group sector.
By Guy Woodford January 30, 2024 Read time: 2 mins
From left to right: A.A. Moreno (President Industrial Cluster Aguascalientes); M. Galluzzi (Continental Mexico); P. Nelles (CEO Group Sector ContiTech); M.T. Jiménez (Governor of Aguascalientes); M.A. Gonzalez (Ministry Economic Development); E. Barros (ContiTech Aguascalientes), A. Ortega (Vesta Industrial Park). Pic: Continental

This new facility will complement and increase Continental's existing manufacturing capacities within the region and generate more than 200 jobs in its first stage. With a total area of more than 85,000m², it will be ContiTech's largest location in Mexico, representing approximately the size of 12 soccer fields. The plant's construction 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 ContiTech executive board member Philip Nelles. "This investment is our answer to the demand and growth of the hydraulic hose market in the region and underlines our strategic approach to becoming 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."

Continental - Mexico
Image synthesis of the new plant in Aguascalientes, Mexico. Pic: Continental

 

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, and machinery with high automation and optimal energy utilisation, 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 Aguascalientes. Continental's operations in the country produce and develop automotive components, rubber products, and tyres exported to different countries, employing more than 23,000 employees.


 

 

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