Tyre manufacturer to invest $90-million in hydraulic hose production plant

German technology company Continental in January announced an investment of $90-million towards the construction of its new plant for hydraulic hose for industrial purposes in the west-central Mexican state of Aguascalientes.

Continental’s operation in Mexico produces and develops automotive components, rubber products, and tyres and it has more than 23 000 employees. The new facility will be the company’s twenty-second plant in the country and the second in Aguascalientes.

It will be one of the biggest investments for Continental’s group sector ContiTech in 2024. The company said the new facility will increase manufacturing capabilities within the region and create more than 200 jobs in its first stage.

The construction of the plant is planned to begin in the second half of the year, and it is expected to start operation in the second half of 2025.

Continental member of the executive board for ContiTech Phillip Nelles asserts that the company’s focus is on strengthening industry business within the Americas region. 

“This investment is our answer to the demand and growth of the hydraulic hose market in the region and underlines our strategic approach to become the innovation leader and full range supplier of hydraulic hoses.” He adds that the new plant will advance the hydraulics business for diverse key industries such as agriculture, mining, construction, manufacturing and energy.

Continental Industrial Solutions Americas head Andreas Gerstenberger notes the company has been involved in the hydraulic hose business for over 50 years and highlights the hydraulic hose and fittings market as the largest in the region.

“With our new plant in Mexico, we will double our capacity in this field and address current and new customers in multiple industries, embracing our ‘in the region, for the region’ approach. Also, with the state-of-the-art infrastructure including solar panels, process water reuse technologies, SmartFactory tools as well as machinery with high automation and optimal energy [usage], our new plant is perfectly prepared for additional expansion activities in the future.”