Continental confirms fiscal 2012 target. Aiming at faster than market growth rate in 2013. Amata City plant to continue increasing vertical integration next year
• In the first nine months of 2012, Continental increased its global sales by 9.1% year-on-year to €24.6 billion.
• Continental Thailand has doubled its sales with a high proportion of export and will continue increasing vertical integration in 2013
Mr. Thomas Chambers, Managing Director, Continental Automotive (Thailand) Co., Ltd., announced Continental Group Q3 2012 operating results in the first nine months of this year. Continental increased its sales by 9.1% year-on-year to €24.6 billion. Based on the first nine months, the company still expects to be able to increase consolidated sales for fiscal 2012 by more than 7% to more than €32.5 billion. In 2011, Continental increased its sales in Asia to approximately €5 billion. Currently, Continental has 43 manufacturing locations in Asia and 30 sales offices. It has 16 joint ventures and 30,000 employees in Asia.
For major challenges in the Thai automotive industry, Mr. Chambers mentioned extremely difficult labor market, human resource management, potential legislation and AEC 2015. While the opportunities are one connected world, eco-friendly tech or green tech and global solutions for global OEMs in the local market.
On ASEAN Economic Community in 2015, he commented that ASEAN automotive market can be unified with these 5 characteristics:
- Harmonize Automotive Product Standards
- Improved Fuel quality standards
- Tax incentive for new technology
- Labor and skilled worker improvement
- ASEAN Local Content transparency
Continental’s growth strategies are: to build further growth along the megatrends of the industry – safety, environment, information and affordable cars. In addition it also invests in regional growth, especially in the BRIC countries. For Continental, the top five emerging markets are China, Brazil, Russia, the South East Pacific region - Thailand for example - as well as India. Another strategy is to continue development towards the trend of product platforms. This is because Continental’s OEMs customers are adopting a platform approach that is resulting in volumes of up to a couple of million systems per year.
General Manager Dr. Dirk Janovsky added that 600 million Baht had been allocated for the production increase in 2012, mainly for higher vertical integration. The Amata City Plant is designed to have full capacity production of 2.5 million injectors and 500,000 high pressure pumps. In 2013, Continental will continue increasing vertical integration. Its local content is currently above 40% which is on target, but it is planning for higher percentage of local content of 70%.
Compared to 2011, Amata City Plant has doubled its production and sales with a high proportion of export. As for the increasingly competitive labor market in Thailand, he added that with Continental’s strong brand and high-tech products, the company is successful in recruiting employees needed.
Dr. Narongsak Rattanasuwannachart, Director, Key Account Management and Business Development & Marketing said Continental's main customers in Thailand are Auto Alliance Thailand (Ford and Mazda), Honda, Mitsubishi, Nissan, Suzuki, GM and Ford. For trading business - In 2013, Continental Thailand will have additional 3 programs for 2 customers. Also, the company has started an intensive program called OPPG (Over Proportional Profitable Growth) for its goal to grow faster than the market.
With sales of €30.5 billion in 2011, Continental is among the leading automotive suppliers worldwide. As a supplier of brake systems, systems and components for powertrains and chassis, instrumentation, infotainment solutions, vehicle electronics, tires and technical elastomers, Continental contributes to enhanced driving safety and global climate protection. Continental is also an expert partner in networked automobile communication. Continental currently has approximately 170,000 employees in 46 countries.
