VOL. 7 | NO. 16 | Saturday, April 12, 2014
Continental Eyeing Memphis for Tire Facility
By Amos Maki
The tire division of Continental AG, one of the world’s largest automotive industry suppliers, is eyeing a location on Winchester Road in Memphis for a retreading, service and sales center.
Continental Tire the Americas LLC is seeking a tax break from the Economic Development Growth Engine of Memphis and Shelby County for a tire facility that will employ 25 people at 3474 Winchester Road.
“One of the significant disadvantages of the 3474 Winchester site is the current property tax liability as well as the potential for significant property tax increases over time,” the company states in its application for a payment-in-lieu-of-taxes freeze from EDGE. “Another disadvantage is the costs of extra security measures that Continental anticipates it will need to take at this location.”
The company’s total capital investment would reach $2.1 million. The 25 new jobs would pay an average annual wage of $41,814. The five-year PILOT would save the company $161,325 while producing $616,281 of new tax revenue.
The Winchester Road warehouse the company is targeting sits on 3.5 acres and was assessed at $364,960.
Founded in Hanover, Germany, in 1871, the Continental AG corporate family is now one of the five largest automotive suppliers in the world and is the second largest in Europe.
In the tire sector, Continental AG ranks fourth worldwide and is the market leader in Europe in passenger and light truck tires and industrial tires. The US entity operating Continental’s U.S. tire operations is Continental Tire the Americas LLC, an Ohio limited liability company.
This Winchester Road project would establish a retreading operation in the Mid-South, using the ContiTread Retreads for commercial trucks. The location would also sell new Continental truck tires, provide area fleet customers with commercial tire-related services and establish a regional sales and service office.
The EDGE board is scheduled to vote on Continental’s request Wednesday, April 16, at 3:05 p.m. at 3693 Tyndale Drive.