ERJ staff report (DS)
Milan -- Pirelli & C. SpA and the Russian State-owned inward investment organisation "Russian Technologies", have signed a letter of intent to begin negotiations for the creation of an industrial joint venture which aims to make and sell car, light truck and heavy truck tyres, steel cord and automotive filters in the territory of Russian Federation and CIS countries.
Pirelli's partner is officially called the State Corporation for Assistance to Development, Production and Export of Advanced Technology Industrial Product . The two companies have agreed to work together exclusively, until 30 September 2008, with the aim of preparing a final deal. Upon its establishment, the two partners would jointly control the joint venture, while Pirelli would be responsible for the development of the business strategy and the conduction of the operations of the joint venture, which would be carried out under the brand name of Pirelli.
Russian Technologies is a legal body established by the Russian Federation Government in the form of state corporation business entity. Its mission is to help Russian design and manufacturing organisations in developing, producing and exporting high technology industrial products in the domestic and foreign markets, and attracting investments to enterprises in various sectors of industry.
Sergey V. Chemezov, Director General of Russian Technologies, said: "The joint venture will be based on mutual interest to successfully fulfil the project which has significant industrial perspectives as it will concentrate the production and sales in Russia and CIS states. We are confident that cooperating with foreign companies independently will make decision-making process more flexible. Russian Technologies is strategically aimed at promoting high-technology production on internal and external markets and is planning to incorporate several hundreds of export-oriented companies, primarily of machine-building sector".
At a recent press conference in Germany, Pirelli told journalists that it currently exports 1.2 million tyres to Russia each year, and hopes to have a factory in production by the end of 2009.Â
This letter of intent is the first step towards establishing an important industrial presence of the Pirelli Group in Russia, a country in which we have a long commercial tradition and which in the next few years will become one of the major world markets in the automotive sector," said Marco Tronchetti Provera, Chairman of Pirelli & C. SpA.
This is an external link and should open in a new window. If the window does not appear, please check your pop-up blocking software. ERJ is not responsible for the content of external sites.
Press release from Pirelli