Continental Grows with Automotive Electronics Technologies in ASEAN

CALAMBA, PHILIPPINES - September 25, 2008: Continental, one of the top five automotive suppliers worldwide, has opened its second manufacturing site at the location in Calamba, Philippines, on September 25, 2008.

The product range produced in Calamba covers inertial, speed, and advanced sensors, chassis components, passive safety and ADAS components out of the Chassis & Safety Division as well as ECUs, transmission controllers, sensors and actuators from the Powertrain Division.

“This investment of approximately Euro 23 million for the new facility of the manufacturing plant in Calamba represents another milestone in Continental’s ASEAN expansion plans”, said Eynollah Rahideh, General Manager of Continental Philippines. “It confirms the company’s strong commitment to the automotive industry in Asia and it certifies the growth of business worldwide” added Detlev von Ramm, the new General Manager of Continental Calamba in the future.

Continental Temic Electronics Phils. Inc. will open up an opportunity for approximately 800 jobs in 2009 when its second phase of the plant starts operation. Already having a workforce of 585 employees, Continental has been established in Calamba Philippines since October 2004, specialized in chassis & safety and powertrain components.

The new building has almost 10,000 m2 and serves as an extended manufacturing base (6,500 m2) for Continentals growing demand for its automotive electronics business for exportation to Asia but also globally. The high-precision mechatronic and electronics manufacturing plant will provide office accommodation, warehouse, well-equipped laboratories and testing facilities to support its business to car manufacturers worldwide.

In future, Continental will produce at the plant in Calamba 6 million sensor clusters per year on 3 manufacturing lines and 1.3 million transmission control modules per year on 2 lines. The volume of pressure sensors will increase to 8 million being produced on 4 lines and the volume of mini wheel speed sensor elements will rise up to 32 million/year on 2 manufacturing lines.

This investment reflects again Continental’s strategy to build and strengthen the network and manufacturing operations in Asia where the company intends to make between 20% and 25% of its total sales in this region by 2015.

The Continental Corporation is one of the top automotive suppliers worldwide. As a supplier of brake systems, systems and components for the powertrain and chassis, instrumentation, infotainment solutions, vehicle electronics, tires and technical elastomers, the corporation contributes towards enhanced driving safety and protection of the global climate. Continental is also a competent partner in networked automobile communication. Today, the corporation employs approximately 150,000 people at nearly 200 locations in 36 countries.

As a worldwide leading technology and systems partner to the automotive industry, the Chassis & Safety Division of Continental AG integrates extensive know-how and leading-edge quality in the fields of active and passive driving safety, safety and chassis sensorics, and chassis components. The Division achieves sales of more than € 5 billion (based on 2006 figures) with a workforce of more than 27,500 (2007). Chassis & Safety develops and produces electronic and hydraulic brake and chassis control systems, sensors, driver assistance systems, air bag control systems, occupant classification systems, washer systems as well as electronic air suspension systems.

Within automotive supplier Continental AG, the Powertrain division integrates innovative and efficient powertrain system solutions into vehicles. This boosts performance and enhances ride comfort while reducing consumption and emissions. As partner to the automotive industry, the division develops and produces a wide-ranging product portfolio at over sixty locations worldwide, beginning with gas and diesel injection systems and engine and transmission controls and extending through to components and systems for hybrid drives. The Division curly achieves annual sales exceeding €5 billion (based on figures for 2006) with a workforce of more than 26,000 employees.