Expansion of ContiTech's Convergence in Asia, Europe, and the United States

In 2015, many countries in the world experienced economic slowdown and negative growth. ContiTech, the global tire group of Tycoon Continental, achieved sales growth of 37%, and its sales increased from 3.9 billion euros in 2014 to 5.4 billion euros.

Group President of ContiTech Division and President of China
Group President of ContiTech Division and President of China

Hans Jürgen Duensing, president of the ContiTech division and a member of the Continental Group Executive Board (right) (Hans-Jürgen Duensing): “This increase is largely due to the American Rubber Company acquired earlier this year. Gwen’s sales.”

In general, ContiTech's own business also achieved stable and orderly growth in 2015, with organic growth of 4%. Given the global economic background in 2015, Donnexin believes that 4% growth is a good and difficult achievement. The Chinese market, which it described as “a vitality”, performed well. Under the active promotion of business units, it achieved double-digit sales growth. Benecke-Kaliko, who produces eco-friendly interior materials, is The Chinese market is particularly eye-catching.

In 2015, 51% of ContiTech's global sales came from the automotive auxiliary business, and 49% came from industrial and automotive sales.

Continental Group Distribution Map
Continental Group Distribution Map

China ContiTech China President and head of the Conveyor Belt Business Unit in China Qi Song (pictured left) stated: “The Chinese auto market is of strategic importance to ContiTech. China is currently the world’s largest auto market and is expected to be the largest in the world. In the high-end luxury car market, China’s auto production and sales volume will reach 24 million units in 2015, and this will reach an important level of 30 million vehicles by 2020. In China, ContiTech has a strong business unit, such as Benecke-Kari. The company's automotive accessory business in China will have very large room for growth, based on the company's interior skin business, vehicle fluid system business, transmission system business and air spring business."

As the number of car ownership in the Chinese market continues to expand, the demand for after-sales products from independent repair shops outside the main plant 4S shop will increase. ContiTech has been actively planning and increasing capital investment in the automotive aftermarket. The goal of ContiTech in the future is to account for 50% each of its automotive and non-automotive businesses in order to balance the cyclical fluctuations in different industries and ensure a steady increase in sales.

From China to Asia's Ambition Map A very important trend in China today is the transformation from quantitative to qualitative change. With the increasing frequency of technology introduction and China's local R&D potential, ContiTech will become a leader in technological innovation with a reputation for natural rubber and plastics. The expansion and localization of R&D will continue to increase investment, and will result in greater gains in the Chinese market. â–¼On April 21st, ContiTech's vehicle fluid system business unit Changshu Phase II plant officially opened. The new plant will have a total investment of 7.8 million euros, which will double the capacity of the vehicle fluid system business unit after expansion. The rubber coating production plant, also located in Changshu, will implement the Standard Operating Procedure (SOP) in 2017. When both projects are completed and put into operation, China will become the only market outside of ContiTech Germany with all nine business units.

ContiTech's localization in China is to use ContiTech's high-tech technology to meet the special needs of customers in different industries in China more quickly and cost-effectively. To achieve such a goal, we must have a strong R&D team to provide customized products and services based on different customer needs. ContiTech also does a great job in developing localization. With the expansion of the ContiTech China R&D center, the R&D and test team's capabilities have also been continuously improved to serve different business units of ContiTech, making product development faster. ——Gao Song

In addition to continual research and development in technology, ContiTech will continue to look for suppliers with forward-looking and technology-focused R&D partners to jointly conduct technological R&D breakthroughs to achieve localization of ContiTech's entire Asian market.

Compared with Europe and the United States, the current Asian market share is not high, but ContiTech hopes that Asia will grow into an important market that can match it. The rise of the Asian market requires China to play a central role. This is why we insist on providing customers with faster, better, and more cost-effective services and products in China, creating higher value for customers. We apply China's experience and technology to the Asian market so that Asia can truly keep up with the European and American markets.

China is already the world’s largest auto market. With Japan and South Korea’s auto market, Asia’s share of ContiTech’s global auto market is expected to reach at least half in the future. The total investment of Continental Group in China in the past five years has reached 1 billion Euros, and it will be the same investment plan for the next five years.

- Dunsin

Technology, or technical Ambition Capital As a technology leader in rubber and plastic solutions, ContiTech uses specialized materials and process knowledge to help target industries and target customers achieve rapid energy savings through the use of lightweight materials.祁 Hamamatsu ▼ The latest lightweight polyamide transmission bracket has been successfully applied to Mercedes-Benz S-Class models, reducing weight by 55% compared with traditional metal materials; air springs used in high-speed rail and subway systems, applied to conveyor belts with lower Rolled resistance conveyor belt products have contributed to energy-saving and emission reduction in related fields.

The ever-lightweight material will drive the miniaturization of the engine. Although miniaturization of the engine can bring about huge energy saving and environmental protection effects, it also brings huge technical challenges:

The miniaturized engine further improves the accuracy of parts processing, and therefore puts very strict requirements on the production process. ContiTech is constantly adapting the relevant processes to ensure that this requirement is met.

The heat dissipation of the miniaturized engine is very large, so the relevant components must have certain characteristics in terms of heat resistance, and the cooling system of the engine and related components must also have good performance, which is also a direction for ContiTech to tackle.

The miniaturized engine is more sensitive to vibrations, so intelligent control solutions must be provided for noise, vibration, and harshness (NVH) related control. This is the third goal of ContiTech's technological development.

In short, in the face of the reality of miniaturization of the engine, ContiTech must achieve technological breakthroughs in different directions in order to maintain the lead in rubber and plastic solutions.

- Dunsin

With continuous improvement of products and forward-looking solutions, ContiTech will always be at the forefront with its partners in the rubber and plastics technology and application market.

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