German tire manufacturer Continental AG, a world-leading auto parts provider, has kicked off the expansion of a plant in the eastern Chinese city of Hefei.

The current tire plant, built at a cost of 185 million euros (246 U.S. dollars), was put into operation in May last year with an output capacity of 4 million car tires a year. The products are used for Mercedes-Benz, BMW and other first-tier cars in China and Asia.

The expansion project began on Wednesday with an investment of 134 million euros, and it will increase the plant's annual output capacity to 8 million tires, said Tobias Kerle, the facility's general manager.

The construction of a bicycle tire plant for the Hanover-headquartered company in Hefei is also continuing apace, after the project began in December. It will be able to produce 1.7 million bike tires a year in its early stages.