Saturday, October 23, 2010

Conti AG to invest more than 500 mln eur in tyres

Oct 23 (Reuters) - German automotive supplier Continental AG (CONG.DE) plans to invest significantly more than 500 million euros ($695.7 million) in new tyre plants, the company's chief executive was quoted as saying.

"We should have invested more in tyres in the past five years, we are catching up on that now," Elmar Degenhart told German weekly Frankfurter Allgemeine Sonntagszeitung, according to an excerpt of an interview to be published on Sunday.

"We are doubling capacity in Brazil, and China is starting up next year. We are also discussing a cooperation in India and are considering our own production in Russia."

The newspaper did not say over what period Conti planned to make the investment.

Degenhart also made optimistic comments about the company's 2010 outlook, according to the newspaper. It raised its top-line outlook in July, saying it sees full-year sales growing by about 15 percent.

"That figure is certainly conservative," the paper cited Degenhart as saying. Conti is due to report third-quarter financial results on Nov. 3. (Reporting by Maria Sheahan; editing by Patrick Graham)

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