Continental Lays Foundation For Automotive Interior Surface Solutions In Pune

• Continental has realised the growth of premium automotive segment in India

• It’s currently in the process of setting up a plant in the Kesurdi area of Pune

• An initial investment of  €22 million has been allocated for the plant

• This will help lower costs for five automotive manufacturers as well as one motorcycle OE partner

While most of us might know Continental as a brand that supplies tyres, the German brand also has a host of other divisions. The company has now announced that its interior surface material division has begun work on setting up a plant on the outskirts of Pune. With an investment of close to €22 million for the project, the facility will span over four hectares of land in the Kesurdi area of Pune district.

One of the major reasons why Continental has decided to go ahead with the project is that they have recognised the growth of the Indian automotive market, especially the premium sector. So far, they cater to five automotive brands as well as a motorcycle manufacturer. But they have been importing their products to the country for long. With this plant, they aim to localise every single bit of the process, including procuring the raw materials.

With prices of genuine leather skyrocketing, Continental’s Acella Eco artificial leather has proven to be a nifty substitute. It is available in two colours. In addition to the Acella Eco, Continental will also be producing the eco-friendly Yorn and Yorn Light expanded foils at the new facility.

The plant will be fully operational by 2020 and will employ 110 workers in the initial stages, with the workforce expected to expand to 250 by the end of stage one.

Here’s the company’s official release on the new plant:

Continental To Launch Production of Premium Automotive Interior Surfaces in India in 2020

• Automotive interior materials for Indian automotive industry

• Investment in state-of-the-art machines and facilities to the tune of some 22 million euros

• Series production scheduled to start in 2020 with approx. 110-strong workforce

• Environment-friendly biogas system will supply sustainable energy to plant Pune,

December 10, 2018. Technology company Continental performed the symbolic groundbreaking ceremony in Pune, India today, signalling the start of construction work on a plant to manufacture premium surface materials for the automotive industry. A 12,000 square meters manufacturing facility with an initial annual capacity of 5 million square meters is to be built on the four-hectare plot at a cost of about 22 million euros (INR 180 Crore). The factory is scheduled to begin production in 2020 with a workforce of up to 110 employees initially.

Continental will supply surface materials to the local Indian market from Pune. “India is now rated as the fifth-largest automotive market in the world with huge growth opportunities,” says Dr. Dirk Leiß, who is responsible for the business unit for surface materials at Continental. “And every vehicle needs interior materials for seats, door trims and instrument panels. This investment will enable us in the future to offer our Indian customers local solutions that are manufactured in the market for the market.” It is estimated that the number of vehicles in India could more than double from the current 4.8 million to around ten million by 2025.

Premium interiors are an important selection criterion for end users

The Acella Eco artificial leather that will be produced in Pune from 2020 is already proving popular in India as a replacement for real leather. “Premium interiors are an important selection criterion for the end user,” emphasizes Leiß. The solvent-free and thus low-odor decorative material is hard-wearing and is available in a two-color design.

Continental has already been represented by a sales team in India for six years. It now supplies the country’s five largest vehicle manufacturers and one of the largest motorcycle manufacturers from other plants. “The new plant in Pune will enable us to further improve both our reaction times and responsiveness and lastingly grow our business in India,” says Leiß with conviction. In addition to Acella Eco, the plan is also to manufacture the environmentally compatible Yorn and Yorn Light expanded foils. The interior surface materials offer soft haptics and a broad processing spectrum. They also allow an extensive range of colors and grain designs.

Globally standardized, high quality standards

An environment-friendly biogas system will supply energy to the plant. Air treatment will be carried out in accordance with a stringent global standard for surface production specified by Continental. The plant, which will offer room for further expansion, will include production, warehousing, R&D labs, sales, logistics and product development facilities – and local purchasing. Only environment-friendly ink systems will be used on the shop floor.

Continental produces surface materials in 15 plants around the world and is therefore represented in the key markets in Asia, the Americas and Europe.

“We chose Pune as a location because of its closeness to customers,” explains site manager Landry Tchapda. Numerous vehicle manufacturers and their system suppliers are right on the doorstep. The proximity to the sea port and airport and the large number of further and higher education institutions were further criteria influencing the choice. When choosing the plot in the Kesurdi area of the south of Pune, the industrial zone’s closeness to the Mumbai-Bangalore highway was a deciding factor.

Also Read:

Nissan Kicks Vs Creta Vs S-Cross Vs Captur Spec Comparison

Tata Harrier Seven-Seater In The Works, Launch In 2020

Top 10 Cars Under Rs 10 Lakh Launched In 2018