German tire maker Continental plans to complete a €5 million capacity expansion at its Hungarian unit, Conveyor Belt Systems Phoenix Kft, by January 2007, turning the plant into the largest maker of conveyor belts in Europe, division chief István Tóth said on Thursday.
As a result of the investment, the plant's conveyor belt capacity will grow to an annual 1.94 million meters from the current 1.2 million meters.
Continental acquired the Hungarian plant in 2005 when it bought Phoenix, which had bought the plant in a privatization deal in 1996. In addition to the conveyor belt plant, Continental owns Phoenix Rubber Kft, which processes tire rubber.
Conveyor Belt Systems employs 236 people and had revenue of €37.7 million in 2005. Phoenix Rubber, which employs 305 people, had revenue of €46.8 million last year. Continental plans to merge the two companies soon, said Tamás Katona, Phoenix Rubber's managing director.