In the past several years, tire manufacturer Continental Tire has invested more than $150 million in new equipment and facility expansions.

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Although it already offers top-of-the-line passenger, light truck and commercial tires through efficient manufacturing processes, Continental Tire North America Inc. still constantly strives to find ways to improve, Vice President of Manufacturing Hank Eisenga says. “We want to improve [the tires’] rolling resistance, give it a better wear and longer life,” he says. “We want to continue to be a leader in innovation.”

In 2007, Eisenga’s facility in Mt. Vernon, Ill., implemented “The Big Tandem,” the company’s patented process used to mix rubber for components.  It is the only one of its kind in the nation and “results in better quality and enhances all of the products we make,” he says. “In terms of lean manufacturing, it is more state-of-the-art and robust.”  

Also, the $17.8 million mixer represents “a significant investment in the long-term success of the Mt. Vernon facility,” he adds.

The automobile industry is competitive, so Continental Tire strives to introduce innovative products to stay on top, Eisenga says. In 2006, it introduced the General Altimax tire line, which includes a feature to let consumers and service centers know when it’s time to replace the tire. “When it’s worn down, there are actual words on the tire [indicting it is time for a change],” he says. “It goes from ‘replacement tire monitor’ to ‘replace tire.’”    

Also, this year, it released a new General Grabber, the company’s high-performance off-road racing tire. “Continental has a wide range of product lines, along with General [Tires], and we are always trying to expand both brands,” Eisenga explains. “General has a strong reputation in light truck and larger off-the-road tires, and this falls into that line.”

As with all its products, teamwork was an important factor in the development of the General Grabber, he says. “Between discussions with end-users and competitors in this arena, as well as working with engineers, we were able to manufacture this product,” he says. “We have also extended our Continental CrossContact LX and ProContact lines recently with a focus on building high performance tires, including ‘W’ speed rated tires in our Mt. Vernon plant.”

Industry Challenges
Continental Tire is a worldwide player in the auto industry, Eisenga says. It recently opened manufacturing facilities in Brazil and will soon open one in China, which will “produce whatever products are needed in those regions,” he says. “We want to be in all regions of the world, and of course we want to continue working to strengthen our position in the U.S.”

Like others, the company is facing some industry challenges, such as the high cost of raw materials and oil, as well as environmental concerns. To combat those challenges, “we have a high level of focus on recycling and are doing everything we can to protect the environment,” Eisenga says.  

The hard work has paid off, and the Mt. Vernon facility was awarded the 2006 Governor’s Award for Pollution Prevention and the 2007 Illinois Recycle Associate Award.

Another challenge is high operational costs. By 2006, many manufacturing plants in southern Illinois had shut down and moved overseas, but Continental Tire wanted to keep its Mt. Vernon plant strong and operational, Eisenga says. To avoid falling behind the competition, Continental and its employees had to cope with some tough sacrifices, including reductions in wages and benefits – though they remain some of the most competitive in the region, he notes.

“The company said that if employees made the sacrifice, it would help by investing between $50 million and $60 million to purchase new equipment for the facility,” he says. “In other words, if employees would invest in [the company] at Mt. Vernon, then [it] would invest in the Mt. Vernon [facility] and the future of every employee here.  I am proud to say that not only did employees agree to the reductions, they came back to work more determined than ever.”

Eisenga noted that just a little over two years later, not only has the Mt. Vernon facility cut its costs, it has moved from near the back of the pack to the front of the pack in many key indicators.  Also, during this time, the company has never cut back on its work force, and has grown to more than 2,300 employees.

Continental also kept its promise and invested more than $150 million in new equipment and expansions. For example, it added 220,000 square feet to its warehouse, 150,000 square feet to its commercial facility and its mixing operations now occupy more than 57 acres. In total, the Mt. Vernon facility is about 3 million square feet, the largest Continental Tire plant in the United States.

“I could not have imagined any of this a few years ago, and none of it would be possible without our hardworking and dedicated work force and also a company that believes in that workforce,” Eisenga says.  “We still have a long way to go, but we made tremendous progress with this facility.”

Continental University
In June, the company’s Mt. Vernon facility opened Continental University, which offers free on-site business and language classes for company employees. The project is a joint effort with Rend Lake College, Southern Illinois University and other local colleges, and the courses can be used toward associates, bachelors or masters degrees. The university had 170 students in its first semester, Eisenga says.

“We have all the learning right here,” he says. “We opened a mini-campus within the facilities.”
Several of the company’s facilities offer college courses on-site, he adds, and each facility is different. “It is a corporate program,” he says. “We want to stress the importance of education, and make it easy for our employees to do the learning.”

‘All Regions of the World’
The company’s goal is to continue to focus on growth. “We will continue to look for opportunities in all regions of the world,” Eisenga adds.

It also plans to continue to expand its Mt. Vernon facility and add more state-of-the-art equipment.

“We will do continuous testing and seek feedback from employees on ways to improve,” he says.

Employee growth will also remain an important focus. “It’s a golden opportunity to give back to employees, strengthen our work force and make us a world-class operation,” he says.