Continental announced plans to expand its ContiTech Tlalnepantla plant, located in the state of Mexico, due to estimations this facility will nearly three-fold its sales by 2018 to more than US$ 114 million.
The German auto supplier manufactures high pressure hoses for air conditioning, hydraulic steering and oils for automotive applications at the Tlalnepantla site.
During a ceremony to mark the 20-year anniversary of the complex, plant director Felipe Gonzalez said that due to demand growth in the automotive industry, the company expects to increase its production from two million pieces to six million for the following year.
Gonzalez explained that in order to reach its goals, the plant will see its footprint increase from 12,000 to 17,000 square meters.
Founded in 1997 to serve the Volkswagen Beetle production in Mexico, the plant now sells parts to BMW, Mercedes Benz, Nissan, Ford, Daimler Trucks and Packard.
"The evolution has been quite positive in terms of the customer base. By 2017 we will close to nearly US$ 40 million sales, but we will exceed 114 million by 2018,” Gonzalez added.
By 2019, the manufacturer expects to have another significant increase in sales, due to the opening of the Infiniti plant in Aguascalientes and a possible expansion of Volkswagen in Puebla.