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Divisions and Business Units

 



Chassis & Safety Division

  • 43,907 employees
  • 112 locations in 22 countries
  • Sales up 6.2% to €9.0 billion

For the Chassis & Safety division, the direction is clear: the future of mobility leads to automated driving. Integral active and passive safety technologies and products that support vehicle dynamics provide greater safety, comfort and convenience.

According to the World Health Organization, around 1.3 million people still die each year in traffic accidents around the world, and millions are injured. The main cause is human error. Studies show that drivers are partly to blame for more than 90% of accidents, and solely to blame for more than 70%. So in order to reduce the number of accidents further, it is necessary to help the driver drive. This will involve continually developing advanced driver assistance systems while increasing their fitment rates, and gradually automating driving tasks to the point of fully automated driving. Electronics are becoming ever more intelligent, providing the perfect foundation for achieving Vision Zero – our vision of accident-free driving.

Globalization, growth, and top performance are the key strategic driving forces of the division, which is subdivided into four business units:

  • Vehicle Dynamics combines products and systems for lateral, longitudinal, and vertical dynamics. These include scalable electronic brake systems and software solutions for vehicle stability and ride comfort for cars and motorcycles, as well as chassis electronics and air suspension systems.
  • Hydraulic Brake Systems is a leading supplier of hydraulic brake systems. The business unit develops and manufactures solutions for traditional braking technology and optimally adapted actuation systems. The product portfolio comprises both conventional products, like brake boosters and brake hoses, and a variety of braking products such as disk, parking and drum brakes, fixed calipers as well as the electric parking brake (EPB). The advantage of the EPB is that it replaces the parking brake and also integrates additional safety features.
  • Passive Safety & Sensorics is working to drive forward the combining of vehicle-dynamics and vehicle-surroundings sensor systems with passive safety systems. This gives rise to integral high-performance protection systems for passengers, pedestrians, and cyclists. V2X communication (car-to-car and car-to-infrastructure) gives rise to swarm intelligence that enables vehicles to practically see “around corners” and thus implement anticipatory safety strategies.
  • Advanced Driver Assistance Systems develops innovative advanced driver assistance systems, which are the foundation for increasing vehicle automation. These use vehicle-surroundings sensors such as cameras, radars and lidars, fulfilling various safety and convenience features. The systems assist drivers in everyday situations such as parking (with the 360°camera system Surround View) or driving in slow-moving traffic. Furthermore, in hazardous situations, these systems warn the driver and actively intervene if and when necessary (e.g. Emergency Brake Assist). Our products therefore play a key role in preventing accidents.

Our growth prospects
Opportunities for volume growth arise from a number of influencing factors such as:

  • Greater use of advanced driver assistance systems due to growing awareness of safety among the population.
  • Global market penetration of the electric parking brake, also in small vehicle segments.
  • Increased market penetration for electronic brake systems (MK 100).
  • The market launch of the innovative MK C1 electro-hydraulic brake in a “one-box design,” which combines brake actuation, brake booster, and control system all in the one system.
  • Our growth in North America and the Asian markets as well as our expanding local presence.
  • Stricter legislation for safety technologies worldwide and the assessment criteria of the European New Car Assessment Program (Euro NCAP).

The Chassis & Safety division is excellently prepared for the future in existing markets with innovative products and new developments. This is due to improved market penetration, increasing installation rates for ABS, ESC, sensors, and passive safety, and increasing use of advanced driver assistance systems and electric parking brakes in most vehicle classes. We are benefiting in particular from the favorable environment. The growth market of Asia and international legislation regarding the use of ABS (also for motorcycles in Europe in the future), electronic stability control (ESC), and airbags are paving the way for further growth.

Advanced driver assistance systems are being included to a greater extent in testing and assessment protocols. As such, it will be possible in the future to receive the maximum of five stars in the Euro NCAP rating only with the help of advanced driver assistance systems.

Electronics play a decisive role in the continuous development of electronic advanced driver assistance and increasing automation. With as many as 90 control units for the powertrain, interior, and chassis, the electronics in an average car represent nearly a third of the value of a car when it rolls off the production line.

The markets are continuing to evolve. The number of projects with a functional portion is steadily increasing and must be closely linked with sensor development. With a view toward the evolving business in assisted and automated driving, the Chassis & Safety division established a central point of contact for commercial matters and all development activities in the Advanced Driver Assistance Systems (ADAS) business unit. The development organization of ADAS was structured in line with the three areas of expertise for assisted and automated driving: sensors, driving functions, and electronics.

The next major step includes connecting the individual electronic systems to expanded functional blocks and grouping them into domains. Integral safety – the interplay of active and passive safety – helps the driver to better deal with precarious situations and more effectively protect road users. As a result, the demand for complex vehicle functions and interconnected systems is growing rapidly.

Chassis & Safety Division: Sales by market

Chassis & Safety Division: Sales by market


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Powertrain Division

  • 37,502 employees
  • 94 locations in 22 countries
  • Sales up 3.6% to €7.3 billion

In the Powertrain division, we integrate innovative and efficient system solutions for the powertrains of today and tomorrow. In line with the central theme of clean power, our products make driving more environmentally compatible and cost-efficient, while also enhancing comfort, convenience and driving enjoyment.

We offer our customers a comprehensive portfolio of products ranging from gasoline and diesel injection systems, turbochargers, engine management and transmission control systems (including sensors and actuators), exhaust aftertreatment and fuel supply systems, through to components and systems for hybrid and electric drives.

The division is divided into five business units:

  • Engine Systems pursues the aim of increasing power and performance as well as reducing consumption. The business unit develops and produces innovative system solutions for environmentally friendly, efficient and sustainable combustion engines.
  • Fuel & Exhaust Management seeks to reduce the level of exhaust fumes released into the environment despite increasing traffic volumes. Its product portfolio includes fuel delivery modules and their components as well as catalytic converters and systems for exhaust-gas aftertreatment and selective catalytic reduction (SCR) dosing.
  • Hybrid Electric Vehicle supplies main components for powertrain electrification in hybrid and electric vehicles. This business unit’s top priority is tailor-made electrification – a cost-efficient strategy for powertrain electrification that is suitable for all vehicle types.
  • Sensors & Actuators is committed to reducing emissions of carbon dioxide and pollutants. This is made possible by sensors and actuators working in combination with advanced engine management systems.
  • Transmission develops and produces pioneering electronic and electromechanical control units for all relevant transmission types and powertrain applications. Products range from high-end systems to cost-optimized solutions for growth markets.

Our growth prospects
The need for individual mobility will continue to grow worldwide. At the same time, the legal limits for CO2 and harmful vehicle emissions will continue to be tightened worldwide, resulting in a growing need for drive technologies with lower fuel consumption and reduced emissions. This trend is providing the Powertrain division with growth prospects in various market segments including:

  • Electrified drive systems
  • Electronic engine-management systems
  • Direct injection and turbocharging
  • Exhaust-gas aftertreatment

Our goal is to increase the efficiency of conventional combustion engines and to develop cost-efficient solutions for the electrification of the powertrain that are tailored to the needs of end customers.

The growth market of electrified drive systems
In the medium term, electrification will make an indispensable contribution to more efficient vehicles with lower emissions. Continental sees the solutions for the mass market in graduated hybridization, or tailor-made electrification, and therefore offers a technology portfolio that car manufacturers can use to hybridize current vehicle platforms in grades from 12 volts to 400 volts, with a transparent cost-benefit ratio. One of our major focal points here is the new 48-Volt Eco Drive system. The new hybrid technology provides features that up to now have been found only in the considerably more expensive high-voltage hybrid systems – these features include the switching off of the combustion engine while driving (known as sailing or coasting), extremely quick and convenient premium engine start-up, and efficient brake-energy recovery (recuperation). The 48-Volt Eco Drive system can be combined with both gasoline and diesel engines, allowing in both cases for substantial reductions in fuel consumption and harmful emissions. For instance, according to the New European Driving Cycle (NEDC) this mild hybrid system reduces average consumption by 13% in a compact car with a 1.2-liter gasoline engine, while a reduction of as much as roughly 21% can be achieved in inner-city traffic. The system also helps to significantly reduce nitrogen-oxide emissions in diesel vehicles.

The growth market of electronic engine-management systems
A major challenge in the future will be to utilize the vehicle’s thermal, mechanical, and electrical energy as efficiently and accurately as possible within a set of complex requirements. Whereas, today, electronic control systems generally rely on signals from sensors located within the vehicle, in the future they will increasingly use information from external sources as well, such as other vehicles or a cloud.

Connected energy management gives the end customer significant added value in the form of reduced consumption. The combustion engine is run more efficiently and is switched off as often as possible as part of a hybrid strategy. With the help of real-time traffic data or traffic light phases, the vehicle is able, for example, to autonomously decide when to switch the engine off without negatively impacting traffic flow or making the journey longer.

Rather than a single energy flow, the aim in the future will be to regulate the balance and direction of various energy flows. As a result of the diverse options presented by tailor-made electrification and of alternative fuels, the potential scope of functions in electronic control systems and interconnection across domain boundaries are increasing dramatically.

Modular designs, such as those in Continental’s EMS 3 engine management architecture, are essential in order to implement this range of energy flows. This design is based on AUTOSAR 4.0 (standard for electronic components in the automotive industry) and is a key tool for handling the growing requirements of the future in terms of complexity, reliability, short development times, and the increasing range of models and functions.

The growth market of direct injection and turbocharging
Smaller, supercharged engines consume less fuel and therefore reduce CO2 emissions. With our pioneering, innovative turbocharger and injector technology, we ensure that modern combustion engines can still compete with alternative drive systems over the long term with respect to efficiency, environmental friendliness, and performance. Our RAAXTM turbocharger (radial-axial) continues this success story.

The growth market of exhaust-gas aftertreatment
The SCR market is another growth market we cater to with our broad product portfolio. The introduction of the Euro 6 legislation cuts nitrogen limits by more than half in comparison with Euro 5. Downstream SCR exhaust-gas aftertreatment allows combustion to be further optimized for lower CO2 emissions and reduced fuel consumption.

We also anticipate growth opportunities not only in the passengercar market but also in the two-wheel segment and in the truck market.

Powertrain Division: Sales by market

Powertrain Division: Sales by market


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Interior Division

  • 43,344 employees
  • 105 locations in 25 countries
  • Sales up 2.1% to €8.3 billion

The Interior division specializes in information management in vehicles and beyond. We develop and produce information, communication, and network solutions. These enable us to control and optimize the complex flow of information between the driver, passengers, and the vehicle as well as mobile devices, other vehicles, and the outside world. To achieve this, we are involved in crosssector collaborations with leading companies.

“Always On” is our vision of the holistically connected vehicle of the future, which acts as a partner in optimally assisting the driver and passengers. This vision centers on people. We implement intelligent technologies that are intuitive to understand and can be used holistically. We are laying the foundations for accelerated growth in the mobility services business area and for the enhancement of our often hardware-based portfolios with supporting services (servitization).

The division is made up of five business units:

  • Instrumentation & Driver HMI is known for display and operating systems. The product range includes traditional complex and fully digital instrument clusters, high-definition touchscreen displays, and innovative head-up displays. Haptic controls, central input devices, interior cameras, and integrated systems for cockpit modules round off the product range.
  • Infotainment & Connectivity focuses on infotainment systems and connecting the vehicle with the outside world. The main focus areas include integrating modern entertainment solutions, conveniently linking mobile devices, and telematics solutions.
  • Intelligent Transportation Systems is geared toward services relating to the vehicle and the integration of data for transport infrastructure, vehicles and users utilizing information and communication technology. Applications that inform the driver about the route as well as travel, fleet, and traffic management features play an important role in this context.
  • Body & Security develops and produces electronic systems that enable access to the vehicle, make key-interlock systems reliable, and ensure the availability of vehicle safety and convenience features.
  • Commercial Vehicles & Aftermarket combines the various activities in the commercial and special-purpose vehicles segment as well as the trade activities in the replacement part business. This is also where our diagnosis system expertise is based. The global network of sales and service companies ensures proximity to our customers. Digital services add to the portfolio for connected fleets.

Our growth prospects
With a view to continuously expanding our business activities, we are concentrating on the following areas:

  • Connecting the driver with the vehicle and the environment by expanding the infotainment range (e.g. integration of mobile devices and connection to the Continental.cloud).
  • Expanding digitalized, intelligent mobility with mobility services.
  • Enhancing our products with software-based services (servitization).
  • Expanding systems and software expertise as well as entering into cross-sector collaborations with leading companies.
  • Using technologies such as augmented reality.
  • Enhancing the use of map data with our electronic horizon, eHorizon
  • Integrated functional and control systems for the growing number of specific vehicle requirements (holistic connectivity).
  • Paving the way for automated driving by creating an interface between human and vehicle.
  • Intelligent services for new legislative requirements such as tirepressure monitoring and the automatic emergency call system.

As a result of our extensive portfolio of products and expertise, we are able to rapidly adapt our solutions for new segments across all platforms. We continue to pursue the aim of achieving a presence with our products on the global markets and stepping up our supply to Japanese automotive manufacturers. We rely on the high levels of customer satisfaction and innovative prowess we enjoy, as well as on systems expertise. We are also strengthening our service business activities. In 2016, we purchased a majority stake in Zonar Systems, a provider of smart fleet-management technology headquartered in the U.S.A.

For some years now, trends in the consumer goods industry have had an ever greater influence on what drivers expect when it comes to in-vehicle information systems. The number and surface area of displays in the vehicle are growing significantly – and this is an enduring trend. Our development team in the Instrumentation & Driver HMI business unit is working on solutions that reduce the burden on drivers amidst increasing information density and contribute to greater convenience when driving. These include, for example, fully digital instrument clusters and head-up displays.

Intuitive interaction with vehicles is taking on an ever greater role in this context. Technologies that are used for this include touch solutions for displays, touchpads, and other user interfaces. Tactile search and activation features help drivers with intuitive operation. Thanks to interior cameras, drivers are in constant dialog with their vehicles and receive relevant information at the right time and in the right manner. The vehicle can identify the driver’s condition using the camera and algorithms – which is important for automated driving, for example. We have already received initial product orders.

The trend toward the constantly connected vehicle is reflected above all in the Infotainment & Connectivity business unit. Cars are becoming part of the Internet of Everything. This is why we use a fast, reliable data connection such as the LTE standard (Long-Term Evolution). Besides secure data transmission, integration of applications is also of high importance. We accomplish this complex task through cross-sector collaboration with partners. Mobile devices such as smartphones, which have become virtually indispensable in people’s daily lives, are particularly worth mentioning in this respect. Through reliable interaction with the vehicle components, the infotainment experience can be expanded and improved with new and current content. To make this possible, our platforms provide corresponding interfaces and support standards. As a result of dynamic trends in the field of entertainment electronics, legislative regulations are being pushed through to cover the safety aspects of driving. Our product portfolio already contains dedicated emergency call systems such as eCall. We constantly monitor the market and analyze other legislative developments, enabling us to respond rapidly to new demands.

In our Intelligent Transportation Systems business unit, we are focusing on three growth areas:

  • Improving efficiency, safety, convenience, and comfort with our eHorizon (e.g. CO2 reduction, support from advanced driver assistance systems, automated driving).
  • The ability of vehicles to share information with each other in real time.
  • Expanding the area of traffic management (e.g. travel planning, parking space management, fleet system solutions).

In the Body & Security business unit, vehicle connectivity also relates to the gateways and antenna modules sector as well. As a result of data security requirements, gateways are playing an increasingly important role. Technologies such as near field communication (NFC) and Bluetooth low energy (BLE) allow for the development of new convenience features with simple and secure integration of smartphones in the vehicle. For example, these include wireless smartphone charging in the vehicle and access to the vehicle via smartphone with a virtual key. Our joint venture OTA keys with Belgian automotive services specialist D’Ieteren offers development and implementation of various additional services relating to digital key management. We are meeting new legislative requirements with services for maintenance, safety, and convenience – such as our tire information systems with information for connected fleet systems, tread depth measurement, or convenient tire-pressure monitoring using a smartphone. The area of lighting is showing clear growth potential with the sharp increase in LED solutions. Here, we are positioning ourselves as an innovator in LED light controls and advanced light functions.

The Commercial Vehicles & Aftermarket business unit is continually expanding the growth market of additional services. We have added new solutions for commercial vehicles to our portfolio, such as ProViuMirror and ProViuDetect and electronic and aerodynamic solutions to save fuel. We are significantly enhancing our range of solutions for agricultural and construction vehicles. In addition to remote diagnostic solutions, our eHorizon offers significant added value to make commercial vehicles safer and more efficient. The integrated human-machine interface in commercial vehicles, including the head-up display, is an extremely noteworthy driving force in enhanced safety – particularly in connection with automated driving. Our success in the tachograph segment, as well as new legislation and the demand for additional services constitute the basis for further growth in Russia and North America. Clear added value for fleet operators is offered by the activities in digital fleet-management systems in terms of fuel savings, CO2 reduction, efficiency, cost control, and compliance with legal provisions.

Interior Division: Sales by market

Interior Division: Sales by market


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Tire Division

  • 52,057 employees
  • 75 locations in 47 countries
  • Sales up 3.0% to €10.7 billion

Tires are the vehicle’s only link with the road. They have to transmit all forces onto four areas of the road surface that are roughly the size of a postcard. In critical situations, it is the technology level of the tires that determines whether a vehicle is able to stop in time or stay in the correct lane during cornering maneuvers.

The Tire division is known for maximizing safety through short braking distances and excellent grip as well as reducing fuel consumption by minimizing rolling resistance.

The division is divided into six business units:

  • Passenger and Light Truck Tire Original Equipment represents global business with automotive manufacturers. Products of the premium brand Continental are marketed worldwide in addition to products of the quality brand General Tire in North America. The product range also includes various run-flat systems that allow you to continue driving even if you get a puncture, so that you can reach the nearest auto repair shop.

Passenger and Light Truck Tire Replacement business is divided into the following business units:

  • EMEA (Europe, Middle East and Africa)
  • The Americas (North, Central, and South America)
  • APAC (Asia and Pacific region)

In addition to the Continental premium brand and the Barum budget brand, which are sold all over the world, we also market the regional high-quality brands Uniroyal, Semperit, General Tire, Viking, Gislaved, Euzkadi, and Sime Tyres as well as the regional budget brands Mabor and Matador. Under the umbrella of ContiTrade, our European retail tire companies, with more than 2,000 tire outlets and franchises, are also assigned to Replacement Business EMEA.

  • Commercial Vehicle Tires boasts an extensive range of truck, bus, and special-purpose tires. This business unit places its focus on entrepreneurial customers, providing them with suitable tires and accompanying services and solutions for professional tire management. This means lower overall costs for the whole fleet and thus optimal cost-effectiveness.
  • Two-Wheel Tires has a broad spectrum of products to offer ranging from city, trekking, mountain-bike, and high-performance racing tires through to motorcycle tires (scooter, enduro, and high-performance road tires).

Distribution of sales
30% of sales in the Tire division relates to business with vehicle manufacturers, and 70% relates to the replacement business.

Our growth prospects
In the area of passenger and light truck tires, we pursue the evolutionary development of our premium products by continuously improving their key properties. This is done by:

  • Specifically adapting new product lines to meet widely varying regional requirements with regard to temperature, road conditions, and legal provisions.
  • Making further improvements in performance characteristics for the highly demanding and competitive product segments: high-performance tires and premium winter tires.
  • The continual reduction of rolling resistance without compromising safety characteristics.

In addition, we use the other brands in our extensive portfolio to offer our trading partners solutions that are as individual as possible in all product segments.

In our premium segment in the Commercial Vehicle Tires business unit, we place particular emphasis on the following:

  • Close collaboration with our fleet customers on the development of individual tire management solutions, including the use of digital technologies.
  • The continuous expansion of our ContiLifeCycle range, from new tires to retreading.

In the Passenger and Light Truck Tires as well as the Commercial Vehicle Tires business units, the division also continues to pursue the following aims:

  • The continuous expansion of production and sales capacity with a focus on the growth regions U.S.A., Europe and BRIC (Brazil, Russia, India, and China).
  • The development of innovative materials such as natural rubber from dandelion roots. In the year under review, Continental succeeded in producing the first test tires for trucks from this sustainable material.

In 2016, the Tire division began the third phase of its long-term growth strategy, Vision 2025. In addition to the start of production at the new truck tire plant in Clinton, Mississippi, U.S.A., and the announced re-entry of the agricultural tire segment, major investments in the year under review also included further expansion of greenfield plants in Hefei, China, and Sumter, South Carolina, U.S.A. In addition, capacity has been expanded at several plants worldwide. In June, the new High Performance Technology Center at the Korbach location in Germany began operations. This center manufactures exceptionally sophisticated 19- to 23-inch tires for sports cars as well as organizing process optimization for all tire plants worldwide. Furthermore, we acquired the racing-tire specialist Hoosier Racing Tire and the Bandvulc Group in the year under review. The acquisition of a leading U.K. fleet-management service provider and independent truck-tire retreader sustainably strengthens Continental’s position on the U.K. and Irish market.

The PremiumContact 6, our new flagship for original equipment and replacement business in Europe, will be available from spring 2017. In addition to the most advanced safety features, it also offers considerably reduced rolling resistance and significantly improved comfort features.

In the Commercial Vehicle Tires business unit, we unveiled our new digital service ContiConnect to our customers in 2016. This tiremanagement system monitors and analyzes the tire pressure and temperature of the entire fleet based on data from ContiPressureCheck sensors. If necessary, ContiConnect notifies the fleet manager and offers corrective action, for example by a Conti360° service partner. The associated online portal produces analyses of the tire performance and overall efficiency of the fleet. Following its launch in the second quarter of 2017, this powerful package of solutions will be available in core markets in the Asia-Pacific region, Europe, and North and South America.

Another part of the digitalization strategy is Continental’s iTires – truck and bus tires with built-in sensors – which started rolling off the production line in the year under review. Special-purpose tires for earth-moving vehicles, ContiEarth™ iTires, are also delivered with an integrated sensor.

New product launches included the steering-axle and drive-axle tire Conti EfficientPro, which boasts the EU label “A” for maximum fuel efficiency. In addition, the Conti LightPro tire line celebrated its debut: innovative, lightweight truck tires that allow for a roughly 80 kilogram increase in loading capacity for tank trucks transporting mineral oil. The truck tire portfolio of the Semperit, Barum, Uniroyal, and Matador brands for the EMEA region was fundamentally revised and presented to retailers as part of celebrations to mark the 110th anniversary of the Semperit brand.

Under the umbrella of ContiTrade, our sales network BestDrive has developed into a single cohesive network worldwide, operating across five continents. Consequently, the premium trademark BestDrive is experiencing a huge boost and market access is being made possible, particularly through the expansion of franchise partners. This has resulted in significantly greater presence, which has made the network more attractive, particularly to customers in the increasingly important fleet- and tire-management segments.

To further increase awareness of the Continental premium tire brand, we will focus on soccer sponsorship as a strategic communication platform in the future as well. As the official sponsor of the AFC Asian Cup 2019, which is due to take place in the United Arab Emirates, we have acquired an extensive rights package. We are continuing our sponsorship activities both in the U.S.A. and Canada as the official sponsor and exclusive tire partner of Major League Soccer, including its Cup and All-Star games, and also in Brazil, where we are the official sponsor and exclusive tire partner of the “Copa do Brasil” soccer cup.

In Europe, after 20 highly successful years as a leading sponsor of the biggest soccer events, we decided to change our strategy in 2016. The new positioning will be designed to tie in with Vision Zero – our vision of road traffic without deaths, injuries, or accidents – on a long-term basis. Together with the Chassis & Safety division, we are working to demonstrate how the combination of modern advanced driver assistance systems and premium tires contributes to better road safety. An ideal platform for this is offered by joint participation as an automotive supplier and exclusive tire partner for the Global NCAP campaign Stop the Crash, which aims to raise awareness about these very crash avoidance technologies, particularly in populous emerging economies. With its truck tires, Continental is also the new product partner of the KAMAZ Master racing team for the Dakar Rally, the most famous long-distance rally in the world. The vehicles will take on the 9,000-kilometer route in South America under extreme conditions with truck tires from the Continental premium brand.

Tire Division: Sales by market

Tire Division: Sales by market


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ContiTech Division

  • 42,909 employees
  • 185 locations in 44 countries
  • Sales up 1.8% to €5.5 billion

The ContiTech division develops, manufactures, and markets functional parts, intelligent components, and systems made of rubber, plastic, metal, and fabric for machine and plant engineering, mining, agriculture, the automotive industry, and for other important sectors.

At all times, we focus on using resources in a responsible manner. We lose no time in adapting major technological trends such as functional integration, lightweight design, and downsizing. To this end, we keep a large number of products and services readily available.

The division is divided into nine business units:

  • Air Spring Systems focuses on components and complete systems for self-adjusting air suspension in commercial vehicles, buses, rail vehicles, stationary machines, and foundation bearings. Air actuators and rubber expansion joints are manufactured for plant and machine engineering.
  • Benecke-Kaliko Group works in a close development partnership with the automotive industry and other industries to manufacture technical, decorative, and customizable surface materials.
  • Compounding Technology supplies internal and external customers with rubber compounds and sheets for a wide range of applications. The materials, which are often developed specifically for particular customers, form the basis for various rubber products.
  • Conveyor Belt Group is a development partner, manufacturer, and systems supplier of steel-cord and textile conveyor belts, crawler tracks, service material, and special products for a large number of industries. It also offers a global belt installation and maintenance service.
  • Elastomer Coatings is known for innovative printing blankets for the printing and packaging industry, diaphragms, materials for life rafts, protective clothing and wetsuits, flexible tanks, and gas holder diaphragms, as well as insulating materials.
  • Industrial Fluid Solutions was renamed from Industrial Fluid Systems in January 2017. The business unit develops and produces hoses and hose systems for small trade and construction, the food and beverage industry, chemical and petrochemical production, as well as for agriculture, mining, steel manufacture, machine engineering, and garden use.
  • Mobile Fluid Systems develops and produces piping systems made from elastomeric hoses and tubes made of plastic, steel, stainless steel, or aluminum for the automotive and commercial vehicle industry.
  • Power Transmission Group supplies products and systems ranging from drive belts through to complete belt drive systems that are used in the automotive industry, agriculture, the bicycle sector, machine and plant construction, and other industries.
  • Vibration Control is a specialist in noise and vibration control, sealing technology, and lightweight technology for the automotive industry and industrial vehicles, as well as for machinery, plants, and motors in diverse industrial sectors.

Distribution of sales
52% of sales in the ContiTech division relates to business with vehicle manufacturers, and 48% relates to business with other industries and in the replacement market.

Our growth prospects
We see opportunities for growth in:

  • Asia, North America and Europe
  • Product innovations and new sectors
  • Digitalization
  • Services tailored to our customers

In Air Spring Systems, we have strengthened our activities in the growth market of air springs and air-spring systems in railway engineering, particularly in Asia and the U.S.A., with the acquisition of an Australian specialist. In addition, we are working on new technologies that further reduce the noise level in rail transport. Increasing digitalization is also giving rise to growth opportunities. In the future, technically advanced air springs will be able to report information on height adjustment and load directly to the train driver and gather information on the rail network

. In the year under review, the Benecke-Kaliko Group reached an agreement on the purchase of the Hornschuch Group. The business unit will thereby strengthen its business with non-automotive solutions and tap new sales markets in North America. The Benecke-Kaliko Group has also opened a new plant in Changzhou, China, where it manufactures environmentally friendly, low-emission, and non-allergenic automotive interior materials. We continue to see further growth in Europe.

Compounding Technology anticipates increases in quantities at all compounding facilities to support the ContiTech companies’ growth locally. At the production facility for rubber compounds in Changshu, China, that was opened in summer 2015, new compounds are going into production every month. The business unit is also profiting from the rising demand for special compounds.

The Conveyor Belt Group is strengthening its business outside of the mining industry to become less susceptible to market fluctuations. In addition to the agricultural sector, the business unit is focusing on the raw-materials processing industries, power plants, and cement factories, as well as steel manufacturers, port operators, the recycling industry, and the wood industry. To strengthen its presence in Africa, the business unit has opened a plant in Jorf Lasfar, Morocco, for the production of textile and steel-cord conveyor belts. There is further potential from increasing digitalization and additional maintenance and service models. Electronic conveyor belt monitoring systems improve the safety of conveyor belt systems and extend the service life of conveyor belts.

Elastomer Coatings sees considerable potential in printing blankets for digital and flexographic printing. ContiTech and Henkel Adhesive Technologies are therefore collaborating closely in functional printing and printed electronics. In addition, there are good market opportunities arising from the construction of a new coating factory at the location in Changshu, China, which will be used primarily for the production of fabrics for industrial applications from the start of 2017.

There is growth potential for Industrial Fluid Solutions arising from a recovery of the oil industry and from the expansion of activities in industries that are not directly dependent on oil. For example, we have expanded the water hose plant in Mount Pleasant, Iowa, U.S.A. With regard to increasing globalization, the business unit sees potential outside of its current focus areas of North America and Europe, particularly in Asia and Latin America.

For Mobile Fluid Systems, there is potential particularly in the growing market for hybrid and electric vehicles combined with solutions for integrated thermal management. In addition, we see new opportunities in 48-volt on-board power supply systems and in the general trend toward lightweight design. The volume of turbocharger lines will continue to increase, thanks to the use of smaller engines as well as the increase in requirements when it comes to larger engines. The business unit is also strengthening its regional presence, particularly in Asia and North America. In Qingdao, the foundations were laid for another Chinese plant to produce automotive hoses. Capacity increases at European locations reflect the increased demand in the region. Further opportunities are provided by the introduction of new, climate-friendly refrigerants, the resulting greater complexity of air-conditioning systems, as well as the tightening of emission standards with the consequent requirements for fuel and particulate filter lines.

The Power Transmission Group sees growth opportunities in automotive original equipment business, for example with projects for hybrid vehicles and belts for steering systems. The focus for the automotive aftermarket is on expanding the product range, with products such as water pump kits being offered. In the industrial segment, business with belts for elevators is increasing. Investments were therefore made in a new production hall in Dannenberg, Germany, and the production of elevator belts in Sanmen, China, was expanded. The business unit is also expanding the agricultural segment further and manufacturing belts specifically for agricultural machinery. In addition, the Power Transmission Group supplies belt systems for e-bikes and develops pedelec systems in collaboration with other business units of the Continental Corporation.

Vibration Control is continuing to consolidate its leading role in lightweight design and won several international awards for this in 2016. The new technology utilizing polyamide offers a weight reduction and a longer service life compared with previous components made from steel or aluminum. Further opportunities for growth arise from the use of renewable raw materials. At the 2016 International Motor Show Commercial Vehicles, we unveiled an intermediate propeller shaft bearing with rubber from dandelion roots for the first time. It stabilizes and minimizes the transmission of vibrations in the chassis.

ContiTech Division: Sales by market

ContiTech Division: Sales by market


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