Pirelli to invest $65 million in Egypt truck tyre plant

ERJ staff report (DS)

Rome -- The Pirelli Group intends to increase its manufacturing in Egypt by 50% thanks to a new investment of 65 million dollars to enlarge production capacity at its factory for radial tyres for trucks and buses in Alexandria. The announcement was made by the Chairman of Pirelli & C. SpA, Marco Tronchetti Provera, to Egyptian Trade and Industry Minister, Mohamed Rashid, at an Italian-Egyptian inter-governmental meeting taking place in Rome.

The new investment will allow the factory in Alexandria to increase its annual production to 1 million units and become the largest site for manufacturing radial tyres for industrial vehicles in the MEA (Middle East and Africa) area.

The factory in Alexandria is owned by Alexandria Tyre Company, a company acquired by the Pirelli Group in 1999. The manufacturing site extends over 300 000 m² and currently employs about 1000 workers. Growth of production capacity will be focused on the most advanced product and process technologies able to express maximum performance both in terms of the needs of emerging markets and with respect to the requirements of the main customers in Continental Europe.

With the increase of production at the plant in Alexandria, total investments made by Pirelli in Egypt since 1999 amount to approximately 300 million dollars.

The increase of production capacity in Egypt is part of a strategy to increase manufacturing presence in countries characterized by strong market growth and cost competitiveness. This initiative, in addition, strengthens Pirelli's position in the radial truck tyre segment following the launch of manufacturing in China in 2005 and the investment in the Gravatai factory in Brazil in 2006. The Pirelli Group also produces tyres for industrial vehicles in Settimo Torinese (Italy), Izmit (Turkey), Feira de Santana and Santo André (Brazil).

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Press release from Pirelli