Continental Powertrain Division has started construction of new powertrain parts manufacturing plant in Kaluga, Russia.

The company will invest about EUR20m in the land, buildings, plant and equipment for the facility, which will manufacture engine control and fuel supply units, to meet the increasing demand for electronically controlled engine systems.

Production at the 7,200sqm plant is scheduled to start in February 2014, following the completion of its construction in mid 2013.

According to the company, the investment is a part of the deal made with the regional government in summer 2011.

Continental's Rubber Group has invested EUR240m to setup a new tire plant that will open at the end of 2013 and will have production capacity of four million tires per year.