ContiTech Press Releases

Hanover/Kolkata, November 03, 2009Remaining 26% of shares in Phoenix Yule Ltd bought • Prerequisite for further growth met

ContiTech AG bolsters its standing in India and is now the single owner of Phoenix Yule Ltd, a manufacturer of conveyor belts, in Kalyani (West Bengal). The company was previously a joint venture in which the Indian company Andrew Yule & Co. Ltd held 26 percent and ContiTech 74 percent of the shares. Thanks to a resolution by the Indian government, ContiTech is now able to acquire the remaining shares. The purchase price was in the one-digit million euro range. "With this buy, we have now met the prerequisite for further growth," says Heinz-Gerhard Wente, chairman of the executive board of ContiTech AG. "Phoenix Yule is a very successful company, which we want to expand. The Indian market is doubly interesting for us: for conveyor belt production and sales."

The joint venture, which was founded in November 1998 by Andrew Yule & Co. Ltd and Phoenix AG, currently employs around 450 workers and produces about half a million meters of conveyor belts annually.