Continental Tire gets Tax Break from IllinoisAssociated Press - May 7, 2011
SPRINGFIELD, Ill. (AP) - Gov. Pat Quinn has signed legislation that could help
a southern Illinois tire manufacturer add as many as 350 jobs.
The bill signed Friday will provide a $19 million tax break to Continental Tire,
which operates a facility in Mount Vernon. The cost of the tax credits to the state will be spread over 15 years in exchange for Continental retaining at least 2,750 employees. Quinn announced the measure's signing in the Chicago suburb of Libertyville, where he touted Motorola Mobility's decision to stay in Illinois.
Continental will receive EDGE tax credits, which are equal to the amount of
state income taxes withheld from the salaries of employees in the newly created
jobs. Democratic state Rep. John Bradley of Marion calls the legislation a "big deal for southern Illinois."
a southern Illinois tire manufacturer add as many as 350 jobs.
The bill signed Friday will provide a $19 million tax break to Continental Tire,
which operates a facility in Mount Vernon. The cost of the tax credits to the state will be spread over 15 years in exchange for Continental retaining at least 2,750 employees. Quinn announced the measure's signing in the Chicago suburb of Libertyville, where he touted Motorola Mobility's decision to stay in Illinois.
Continental will receive EDGE tax credits, which are equal to the amount of
state income taxes withheld from the salaries of employees in the newly created
jobs. Democratic state Rep. John Bradley of Marion calls the legislation a "big deal for southern Illinois."
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Continental Plans New Plant in North America
April 29, 2011
Facing ever tightening inventories and fill rate problems, Continental AG will be building a new tire plant somewhere in North America in the near future.
April 29, 2011
Facing ever tightening inventories and fill rate problems, Continental AG will be building a new tire plant somewhere in North America in the near future.
CEO and chairman Elmar Degenhart made the statement toward the end of Continental AG’s annual shareholder meeting, held in Hanover, Germany, yesterday. In addressing Conti’s tire operations, Degenhart stated: “We also want to cover rising demand in the NAFTA region, including the large U.S. market, with local production – so there are plans for a new tire factory there, too.
“Incidentally, these plans are further proof for the depth of the turnaround that the Passenger and Light Truck Tires division has achieved in the Americas region by means of determination and perseverance. Back at the beginning of the new millennium, the passenger and light truck tire business incurred massive losses in this region. Today it is profitable and, at the same time, a growth area. This is due to the division’s impressive management performance and the dedicated teams in the Americas. And the investments we are planning demonstrate that we are convinced of more success.” Continental will review locations for a new Greenfield plant, and hopes to announce a location and construction timeline by the end of the third quarter. While the U.S. is in the running as location for the plant, based on the actual wording of Degenhart’s statement so are Canada and Mexico. Given Continental Tire the Americas’ past difficulties with the USW, some of which resulted directly in the closing of two tire plants in the U.S., the company will certainly consider its relationship with the union. CTA operates plants in Mt. Vernon, Ill., San Luis Potosi, Mexico, Camacari, Brazil, and Cuenca, Ecuador. Plans are in the works to add capacity at the Mt.Vernon plant, and CTA has already undertaken a $210 million expansion program at the Brazil plant.
“Incidentally, these plans are further proof for the depth of the turnaround that the Passenger and Light Truck Tires division has achieved in the Americas region by means of determination and perseverance. Back at the beginning of the new millennium, the passenger and light truck tire business incurred massive losses in this region. Today it is profitable and, at the same time, a growth area. This is due to the division’s impressive management performance and the dedicated teams in the Americas. And the investments we are planning demonstrate that we are convinced of more success.” Continental will review locations for a new Greenfield plant, and hopes to announce a location and construction timeline by the end of the third quarter. While the U.S. is in the running as location for the plant, based on the actual wording of Degenhart’s statement so are Canada and Mexico. Given Continental Tire the Americas’ past difficulties with the USW, some of which resulted directly in the closing of two tire plants in the U.S., the company will certainly consider its relationship with the union. CTA operates plants in Mt. Vernon, Ill., San Luis Potosi, Mexico, Camacari, Brazil, and Cuenca, Ecuador. Plans are in the works to add capacity at the Mt.Vernon plant, and CTA has already undertaken a $210 million expansion program at the Brazil plant.
Editorial ; What`ya bet, the new plant goes to South America ? Then ship back the tires, to the USA for sale ! Thanks to my friend Buddy M. for this one. As far as the USW causing two plants to close. Nope !
1 comment:
It would be nice if you updated this post with the announcement of the location of the new plant, or if you had done some research in the location considered, (this was available at the time of your original post).
Haley, execs break ground on Sumter Continental plant - wistv.com - Columbia, South Carolina | http://j.mp/PiekQl
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