German automotive supplier Continental is set to build a new commercial vehicle tyre plant in Mississippi, US.
The project is expected to entail an investment of about $1.4bn. Continental has signed an agreement with the state government to buy a greenfield site for the new facility.
The new facility will be spread out on a 1,000-acre site in Hinds County off Interstate 20, two miles from Clinton and 20 miles from Jackson.
The company is expected to start construction work on the project in 2018, with production of tyres to commence by the end of 2019. Site development is expected to commence in 2016.
The project is anticipated to create about 2,500 jobs.
Continental executive board member for the tyre business Nikolai Setzer said: “The project in Hinds County, Mississippi, is part of our global growth strategy. In a first step the new plant is especially addressing our commitment to grow our commercial vehicle tyre business in North America.
“The announcement of a new tyre plant in the US is the second in just five years for Continental. We thank the state of Mississippi, Hinds County and the city of Clinton and governor Bryant for his leadership in bringing us to the Jackson area, and we look forward to a strong business relationship for years to come.”