Continental Tyre South Africa (CTSA) is investing R300-million to R320-million in its Port Elizabeth facility this year, says marketing and sales GM Shaun Uys.
The investment will focus on increasing energy efficiency, as the electricity price in Port Elizabeth “has gone through the roof”, and on the expanded production of run-flat and 4 × 4 tyres, with the latter especially aimed at the sports utility vehicle (SUV) market.
Uys says SUVs make up 15% to 20% of the South African market, “and double that in Africa”, with this figure “continuing to grow”.
He says CTSA has an investment wish list for 2015 of another R200-million, aimed at supporting its tyre production for local vehicle assemblers.
Around half of CTSA’s production is for the vehicle assembly market, with the remainder for the export and retail markets.
CTSA also hopes to expand its retail footprint into East and West Africa “soon”.
CTSA invested R470-million in its assembly operations from 2009 to 2013.
The 2014 investment will see CTSA grow passenger car, 4 × 4, light truck and light commercial vehicle tyre production to 3.6-million tyres a year, up from the around 3.2-million produced in 2010.
The 90 000 m2 New Brighton West plant has also started producing the General Tyre range, replacing Barum tyre production as it is slowly phased out.
Within the new General Tyre range, local production includes selected sizes of the Grabber all-terrain tyre, Altimax Comfort and Altimax Sport passenger car tyres, as well as an extensive range of agricultural, mining and truck tyres.
The local General Tyre line-up also incorporates selected imported sizes, while the Grabber off-road mud tyre is imported from the US.
The US General Tyre brand, part of the Continental stable, will be CTSA’s second brand in Southern Africa, with Continental still the first brand.
CTSA’s third brand will be the budget Slovakian Matador tyre.
Barum will remain on sale as a semi-exclusive brand.