Continental Tire the Americas has reached an agreement with the state of Mississippi to purchase a site for the construction of a commercial vehicle tire plant.
Continental has committed for a long-term investment totaling approximately $1.4 billion and employing 2,500 people when the plant reaches full capacity in the next decade. The new manufacturing facility will be located at a greenfield site in Hinds County off of Interstate 20, two miles from Clinton and 20 miles from Jackson, the company says.
“The project in Hinds County, Mississippi, is part of our global growth strategy. In a first step the new plant is especially addressing our commitment to grow our commercial vehicle tire business in North America,” says Nikolai Setzer, Continental’s executive board member for the tire business. “The announcement of a new tire plant in the U.S. is the second in just five years for Continental. We thank the state of Mississippi, Hinds County and the City of Clinton and Governor [Phil] Bryant for his leadership in bringing us to the Jackson area, and we look forward to a strong business relationship for years to come.”
Continental’s business growth has consistently exceeded the market over the last five years and the company continues to see customer demand for its products — both new truck and bus tires as well as retreads which are growing beyond the company’s existing capacity.
“Today is truly a great day for the state of Mississippi and our thriving automotive industry as we officially welcome Continental to Hinds County. The company’s decision to bring 2,500 new jobs to Central Mississippi speaks volumes about our dedication to developing the workforce of the future, as well as a business environment that spurs growth, expansion and innovation,” says Bryant.
“I thank Continental’s Executive Board Member Nikolai Setzer and the entire Continental team for choosing to invest in Mississippi and our citizens. The positive impact this manufacturing plant will have on the region, the state and our automotive industry will be felt for many years to come. I look forward to the company’s success and longevity in Hinds County.”
Continental says a date for the start of construction has not yet been announced, but the company expects to begin site development in 2016 and begin construction of the plant in 2018. The site is nearly 1,000 acres and is by size and location well suited for setting up a gradually growing tire plant. The production of commercial vehicle tires is planned to start by end of 2019, Continental says.