Continental to keep investing in Lithuania despite China pressure – Reuters

February 18, 2022 by No Comments

A Continental sign and German and Lithuanian flags are seen on the factory in Kaunas, Lithuania December 17, 2021. REUTERS/Alius Koroliovas/File Photo

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VILNIUS, Feb 18 (Reuters) – Continental (CONG.DE) will continue investing in a factory in Lithuania, an executive was quoted saying, despite a diplomatic dispute between Beijing and the Baltic state that has threatened to embroil the German car parts maker.

Two people familiar with the matter told Reuters in December that China was pressuring Continental to stop using components made in Lithuania, after a row erupted over the opening of a de facto Taiwan embassy in the capital Vilnius. read more

Taiwan is a self-ruled island that China views as part of its territory, and following the embassy dispute China has pressed multinationals to sever ties with Lithuania or face exclusion from its market – dragging firms into the diplomatic spat and placing Beijing on a collision course with the European Union. read more

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But the director of Continental’s Lithuanian factory told local newspaper Verslo Zinios its investment plans hadn’t changed.

“Our plans in Lithuania are the same as we stated at the beginning – 1,500 jobs and over 185 million euros ($210 million)investments,” Shayan Ali was quoted saying.

Asked about the Chinese trade pressure, he said the factory “was undoubtedly affected by the changing situation, we did all we can to adapt to changing circumstances”. He gave no further details.</…….

Source: https://www.reuters.com/business/autos-transportation/continental-keep-investing-lithuania-despite-china-pressure-2022-02-18/

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