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Tier I parts supplier Continental AG (Hanover, Germany) has opened a new production facility in the Chinese city of Jinan, Shandong province, for manufacturing auto electronics components for commercial vehicles and the aftermarket. This is the company's 18th manufacturing site in China and will employ 210 staff initially, rising to double that number by 2015.

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Component plant starts up in China's commercial vehicle hotbed

Tier I parts supplier Continental AG (Hanover, Germany) has opened a new production facility in the Chinese city of Jinan, Shandong province, for manufacturing auto electronics components for commercial vehicles and the aftermarket. This is the company's 18th manufacturing site in China and will employ 210 staff initially, rising to double that number by 2015.

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Commercial vehicle instrument clusters will be manufactured by Continental in Shandong Province, China.

The new plant will initially focus on the production of instrument clusters for commercial vehicles in 2011, and is capable of producing 66,000 units per month. The company also plans to include production of body and chassis electronics starting in 2012, to help meet increasing demand for highly-capable and cost-effective solutions for the local commercial vehicle and construction equipment manufac­turers. The total floor space of the new facility in Jinan is 21,169 m2.

Ranked third in terms of GDP in China in 2010, Shandong province is home to many key commercial vehicle and construction equipment manufacturers, and is where many of Continental's important customers are based. Continental and China National Heavy Duty Truck Group Co., Ltd. (CNHTC, also known as Sinotruk), one of China's leading commercial vehicle producers, signed a memorandum agreement in May 2008 and a strategic cooperation agreement in November 2008, which led Continental to establish its new operational base for commercial vehicles in Jinan.

Dr. Michael Ruf, Head of the Commercial Vehicles & Aftermarket business unit, Continental Corporation said, "As figures have indicated, China is the largest automotive and commercial vehicle market in the world in terms of production volume, and is experiencing steady growth over the years. From 2012 onwards, nearly every second car worldwide will be manufactured in Asia, with China being the growth leader.  Continental is poised to capture the potential in this market by providing a wide array of high performance electronics solutions for our local com­mercial vehicle and construction equipment manufacturers, with our global know-how and highly experienced technical support through technological innovations and localization."-[email protected]

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