Continental tire plant expands despite car slump
Posted July 20, 2009 10:54 a.m. EDT
Updated July 20, 2009 11:57 a.m. EDT
RALEIGH, N.C. — A subsidiary of German tire and car parts maker Continental AG plans to expand operations at a North Carolina brake systems factory despite slack parts demand from auto makers.
North Carolina officials on Monday approved a state grant of up to $2.2 million over nine years to coax Continental Teves Inc. to expand operations in the Henderson County city of Fletcher.
The plant makes brake systems and components and employs about 290. The state grant is conditional on the company adding 338 jobs in the next five years. A second plant in Morganton employs about 370 workers.
Continental expects to invest $30.1 million in the Fletcher plant.
North Carolina Commerce Secretary Keith Crisco met with Continental officials in Germany in June during a industry recruitment trip to Europe.
The German parent company said its pretax profit slid 91 percent during the second quarter as sales slowed on weaker demand from auto companies.