ContiTech AG of Hanover, Germany, is bolstering its involvement in Eastern Europe, investing over €10 million in a new plant in Serbia. Starting in mid-2012, the production facility in Subotica in northern Serbia is to manufacture hose lines for the automotive industry. By 2016, the plant will have a workforce of 300 and is the second ContiTech plant in Serbia.

The new location expands the production capacities of the hose line specialist ContiTech Fluid Technology, a business unit of ContiTech. The plant is to assemble braided hose applications for use by European automakers in power train systems.

 In explaining why this site was selected, Matthias Schönberg, general manager of ContiTech Fluid Technology, notes: "Subotica is very well situated logistically for our customer base. The basic labour market conditions are also right." The fact that it is close to sister plants in Szeged, Hungary, and Timisoara, Romania, also offers advantages.

The plot for the production hall, which will have an initial area of 7,000 square meters, is located in the duty-free zone in Mali Bajmok industrial park. ContiTech estimates commencement of construction of the factory will be in November 2011 at the latest. The city of Subotica and the Serbian state are providing investment support and further expansion of the plant at a later date is planned.

ContiTech Fluid Technology produces hose line systems for the automotive industry, machine and systems engineering and oil extraction. Its 13,000 employees realized sales of €1,120 million in 2010.

In 2009, ContiTech had bought the Serbian conveyor belt company Kolubara Univerzal and has since produced conveyor belts in Veliki Crljeni, south of Belgrade, for the Central and Eastern European market.