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Anhui’s efforts to increase and improve foreign investment are rewarded

source:Anhui Today release date:2017/10/26 hits:466

On March 28, the official opening of Continental’s Phase III tire plant expansion at Hefei was under way. It takes about 490 days to complete the expansion project. The investment is about approximately €250 million. It is expected that after the completion of the production capacity, the Hefei tire plant Phase III expansion will enable Continental Tires to boost its annual production capacity from currently about 8 million to 14 million tires.

“We regard the China market as the company’s main growth engine for the upcoming years. This large-scale expansion once again represents our confidence and commitment to the China market.” Said Mr. Nikolai Setzer, member of the Executive Board of Continental Corporation and Head of the Tire Division.

Since 2011, Continental Tires has been systematically ramping up the production capacity in the Hefei tire plant, which amounted to a total investment of about €570 million. As part of its strong commitment to the China market, Continental Tires also launched a Research and Development Test Center as well as its first training center in Hefei with the ultimate goal to enhance its local competency, laying a solid foundation for the company’s ambitious growth plan in the Asia Pacific region.

“Since the plant was put into operation, it has been developing very rapidly. By the end of 2016, we had produced about 20 million tires. Of which, 99 percent were supplied to China’s domestic market, occupying 5 percent of the country’s auto tire market,” said Wang Xiaoji, general manager of Hefei plant.

In recent years, the province has placed top priority on attracting the world’s top 500 enterprises or well-known multinational companies and industry leading enterprises. The priority among priorities is the utilization of foreign capital and the active optimization of the investment environment.

In 2016, the province’s existing 101 foreign-invested enterprises invested an additional total of 1.7 billion US dollars, with an increase of 9.6 percent.

As overseas giants accelerate their entry into Anhui, the scale of foreign capital utilization has been expanding continuously and the structure has been further optimized. The strategic emerging industries and manufacturing sector have become a focus of foreign investment. 

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