Continental Enhances Specialty Tyre Production in Sri Lanka

Continental has announced a significant expansion of its manufacturing capabilities in Sri Lanka. With a €13 million investment aimed at enhancing the pre-production capacities of its Kalutara plant, Continental aims to make its material handling tyres production self-sufficient, signaling a robust step towards optimizing its global manufacturing footprint.

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Published on
February 5, 2024

Strengthening Global Production Capabilities

Since 2009, the Kalutara facility has been a cornerstone of Continental’s industrial solid tyre production, primarily focusing on material handling tyres used in forklifts and other related vehicles. This latest investment is set to create approximately 200 new jobs over the next three years, enhancing local production capabilities and ensuring a more streamlined supply chain that will benefit customers worldwide with improved product availability.

Klaus Framenau, Head of Business Field Material Handling at Continental, highlighted the strategic importance of the Kalutara plant within the company's global production network. "Our Kalutara plant is an integral part of our global production network. The most recent investment decision is a testament to that. At Kalutara, we manufacture tailor-made specialty tyre products for our customers worldwide," Framenau stated. He further emphasized the company’s commitment to expanding its Material Handling Business Field as part of Continental's Vision 2030 strategy program.

A Commitment to Specialised and Sustainable Production

The Kalutara plant specializes in the production of Press-on-Band tyres and Super Elastic tyres, catering to the American, Asian, and select European markets. Continental's specialty tyre brands, including Continental, General Tire, and Barum, offer a wide range of applications to meet diverse customer needs globally.

Continental's Specialty Tyres business area is dedicated to developing, producing, and marketing an extensive variety of tyre applications. This ranges from agricultural, earth-moving, and port vehicle tyres to material handling, bicycle, motorcycle, and racing tyres. Additionally, Continental is focused on providing tailor-made digital tyre solutions to enhance customer efficiency and help reduce operational costs sustainably.

The investment in Sri Lanka is part of Continental's ongoing efforts to advance innovative technologies and sustainable products and services throughout the tyre value chain. This includes the procurement of sustainable materials and the recycling of end-of-life tyres, underscoring the company’s commitment to sustainability and innovation in its operations.

With this expansion, Continental reinforces its position as a leader in the global tyre manufacturing industry, strategically enhancing its production capabilities to meet growing market demands while emphasizing sustainability and efficiency in its operations.

Common Q&A - Continental Enhances Specialty Tyres Production in Sri Lanka

What is Continental's latest investment in Sri Lanka about?

Continental is investing €13 million to expand the manufacturing footprint of its Specialty Tyres business area in Sri Lanka, specifically at its Kalutara plant. This investment aims to enhance local pre-production capacities and make the production of material handling tyres self-sufficient.

How will Continental's investment benefit customers?

The investment will lead to improved product availability for customers worldwide due to more optimised and self-sufficient production processes at the Kalutara plant, reducing cross-country dependencies in the logistic supply chain.

What types of tyres does Continental produce in its Kalutara plant?

Since 2009, the Kalutara plant has specialised in the production of industrial solid tyres for forklifts and other material handling vehicles, including Press-on-Band tyres and Super Elastic tyres.

How many jobs will Continental's expansion in Sri Lanka create?

Continental's expansion is expected to create around 200 additional jobs over the next three years, contributing to the local economy and workforce development in Sri Lanka.

What are Continental's long-term goals for its Specialty Tyres business?

Continental aims to systematically grow its Specialty Tyres business as part of its Vision 2030 strategy program, focusing on expanding its share in growth markets worldwide and enhancing its product offerings across various tyre applications.

How does Continental's Specialty Tyres business area contribute to sustainability?

Continental's Specialty Tyres business area is committed to advancing innovative technologies and sustainable products and services along the entire tyre value chain. This includes the procurement of sustainable materials and the recycling of end-of-life tyres, aiming to reduce operational costs sustainably and enhance customer efficiency.

What markets does the Kalutara plant serve?

The Kalutara plant caters to the American, Asian, and selected European markets, manufacturing specialty tyre products that meet the diverse needs of customers worldwide.

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