Continental Tyre South Africa (CTSA) will invest an additional R91-million in new machinery and upgrades at its Port Elizabeth plant, which produces Continental, Barum and Matador brand tyres, this year.

The tyre manufacturer invested more than R400-million in its 3.5-million-tyres-a-year plant operations over the last four years.

“There is increased demand for offroad vehicle tyres and, to keep up with demand, we have to invest in additional machinery,” says CTSA corporate communications manager Gishma Johnson.

In addition to new machinery, new informa- tion technology systems were being installed to support the manufacturing processes and will result in greater production efficiencies.

She adds that the steady increase in vehicle sales over the last three years and the subse-quent growth in demand for tyre replacements have positively impacted on tyre production and sales.

However, Johnson says investments in the business can only continue should the company remain profitable, adding that, while CTSA is part of a multinational automotive conglomerate, it is self-funding and responsible for its own sustainability.

“The ongoing increases in electricity and fuel prices are a major threat to our competiveness. We compete for business against several devel- oping countries where production costs are sig- nificantly lower than in South Africa,” she says.

In addition to the high utility costs, South Africa’s high port charges and additional taxes and levies are placing increasing pressure on companies wanting to continue investing in the country.

Johnson adds that the tyre industry requires greater numbers of skilled and semi- skilled people, pointing out that CTSA is continuously engaged in training and upskill- ing its employees.

Meanwhile, the company says it continues to invest in innovative methods to minimise its impact on the environment.

“CTSA is committed to the protection of the environment in which we operate. We recognise that, during the manufacturing of tyres, our activities, products and services can impact on both people and the environment. We design our processes and products with an emphasis on avoiding any negative consequences for the environment,” she comments.