Continental Announces Significant Expansion of its Newport News, Virginia Manufacturing Facility

AUBURN HILLS, Mich., Dec. 15 /PRNewswire/ — Today, Continental announced
that the Company will significantly expand the products manufactured at its
Newport News, Virginia facility as part of the on-going consolidation of
manufacturing operations in the Company’s Engine Systems business unit. The
expansion will involve the relocation of diesel fuel injection products
currently manufactured at the Company’s Blythewood, South Carolina facility to
Newport News. Continental plans to invest more than $190 Million in the
Newport News plant as part of this expansion project over the next two years,
creating approximately 300 jobs by end of year 2013.

“Continental is continuously evaluating the Company’s global manufacturing
portfolio to develop new strategies for designing and manufacturing the
highest quality products for our automotive and commercial vehicle customers,”
said Kregg Wiggins, Senior Vice President Powertrain, Continental Automotive
Group – NAFTA region. “This expansion will achieve significant advantages for
our customers by leveraging our expertise in developing gasoline and diesel
technologies and reducing our overall manufacturing costs by eliminating
redundancies and consolidating common functions.”

The 366,000 square foot Newport News facility opened in 1971 and currently
employs 576 people. The location produces gasoline fuel components (injectors
and pressure regulators) for North American, European and Asian Original
Equipment Manufacturers.

As part of the consolidation, Continental plans to close its Blythewood,
South Carolina facility which currently manufactures diesel fuel injection
products by the end of 2010. Currently, 440 people work at the 221,750 square
foot Blythewood/Columbia Engineering facilities, which Continental opened in
2000. Continental made the decision to close the Blythewood facility and
relocate the diesel manufacturing operations to Newport News after a
comprehensive evaluation of the two plants. In the evaluation process,
Continental analyzed both operational and financial factors, including the
capacity and configuration of the two facilities, the ability to expand these
facilities to accommodate additional product lines, plant performance and
operational efficiency, facilities costs, administrative costs, state
incentives, personnel and labor costs, and the ability to hire and retain
skilled employees. Although both locations offered distinct advantages and
unique opportunities, Continental ultimately concluded that Newport News
offered a more desirable venue. The Blythewood facility will continue to
operate for the next 12 – 18 months as product lines are transitioned to
Newport News.

“We sincerely regret the impact that this decision will have on our
employees and their families in Blythewood and appreciate their years of
service,” said Wiggins. “I have instructed our Human Resources team to
immediately begin the process of assisting displaced Blythewood employees with
their transition to other employment opportunities both inside and outside the
Continental organization.”

Some employees at the Blythewood facility will have the opportunity to
apply for positions at Newport News, while Continental will assist others with
outplacement services.

With targeted annual sales of more than Euro 26.4 billion ($40 billion US)
for 2008, Continental 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 146,500 people at nearly 200 locations in 36 countries.

SOURCE Continental