Continental plans to invest over $40 million to build hydraulic hose facility in Mexico

Fairlawn, OH — Continental will expand its hydraulics business in North America. A new, state-of-the-art hydraulic hose production facility will be built in San Luis Potosi, Mexico, to increase and complement manufacturing capabilities in the region and beyond. The planned investment is worth more than $40 million. The new facility will provide additional wire braid and wire spiral capacity to support growing needs across North America.

“Over-proportional growth in North America is a focus for us,” said Andreas Gerstenberger, Head of Continental’s global Industrial Fluid Solutions business area. “We have many successful facilities in the region that will be complemented with this investment thanks to additional production capacity. The new facility will allow us to further expand our hydraulics business with the most compelling portfolio of hoses available and continue to strengthen our commitment to our customers and the North America region. It underlines our strategic approach to be the top performer in our markets.”

Hydraulics products support many key industries, including agriculture, construction, energy management, commercial and off-highway vehicles, and manufacturing. Future development will focus on carbon neutral products that support a 100% sustainable value chain.

The production facility will create approximately 150 new jobs. The investment will help to increase regional manufacturing capabilities and supply chain efficiencies. It creates multi-location capabilities across the region and is a part of Continental’s commitment to growth in North America.

By combining innovative processes and state-of-the-art machinery, the facility is designed to achieve the highest-possible manufacturing efficiency. Industry 4.0 standards, which connect production with modern information-and-communication techniques, will be applied to connect and integrate 100% of the machinery on site.

In addition, a new level of energy efficiency and sustainability will be achieved on site thanks to innovative production processes and highly-efficient utility generation. Green and environmentally-safe factories are an essential part of the Continental strategy.

“The demand and growth of the hose market necessitates an investment like this,” added Gerstenberger. “We’re proud to be a leader in industrial fluid solutions and we’re investing to build that success across the entire business portfolio. The new location will support ongoing activity in other Continental facilities to ensure all operate efficiently and effectively for the long term. This investment in additional regional capacity will fuel further growth for all of our facilities and operations.”

Construction of the facility is expected to commence later this year. Operations are expected to start in 2024.

Continental offers an unmatched portfolio of industrial hoses and fittings. Continental designers and engineers are constantly seeking new innovations across agriculture, construction, energy management, manufacturing, and transportation applications. To learn more about Continental’s full suite of industry solutions, visit www.Continental-Industry.com.

Continental develops pioneering technologies and services for sustainable and connected mobility of people and their goods. Founded in 1871, the technology company offers safe, efficient, intelligent and affordable solutions for vehicles, machines, traffic and transportation. In 2021, Continental generated sales of €33.8 billion and currently employs more than 190,000 people in 58 countries and markets. On October 8, 2021, the company celebrated its 150th anniversary