Continental investment trips on authorisations

Continental AG (Europe’s second-largest tyre producer) aims to invest 110 million euros at its Timisoara-based plant, but is having trouble getting the environment licence. In line with the company’s business plan, the factory’s expansion process should have been kick-started this summer. However, for legislative and bureaucratic reasons, the company might not get all the necessary licences in due time and thus give up the investment and place the money in its Czech Republic plant, instead. In the first phase, the project stipulated the construction of a new production hall that was due to be linked to the already-existing premises: this way, the company only had to build two walls and a roof. Nevertheless, Continental AG has not received any construction authorisation yet. The reason? To initiate construction works, the company first needs, according to the law, an environment licence, because the hall is destined to an activity posing a pollution hazard. ZF