ContiTech to build new hose plant in Serbia

ContiTech to build new hose plant in Serbia

22 September 2011

Subotica, Serbia – ContiTech is to build a new automotive hose factory in northern Serbia, near the town of Subitica. The new plant represents an investment of over euro 10 million and is expected to be on stream by mid-2012. When it reaches full capacity in 2016, the plant will employ 300.

The plant is to assemble hose applications for use by European automakers in powertrain systems. In explaining why this site was selected, Matthias Schönberg, general manager of ContiTech Fluid Technology, notes: "Subotica is very well situated logistically for our customer base. The basic labor market conditions are also right." The fact that it is close to sister plants in Szeged, Hungary, and Timisoara, Romania, also offers advantages.

The plot for the production hall, which will have an initial area of 7,000 square meters, is located in the duty-free zone in Mali Bajmok industrial park. ContiTech reckons with the commencement of construction of the factory in November 2011 at the latest. The city of Subotica and the Serbian state are providing investment support. Further expansion of the plant at a later date is planned.

In 2009, ContiTech had bought the Serbian conveyor belt company Kolubara Univerzal and has since produced conveyor belts in Veliki Crljeni, south of Belgrade, for the Central and Eastern European market.