ERJ staff report (DS)
Milan, Italy -- Pirelli is to raise capacity in its low cost tyre factories and develop a fully-automated plant in Italy.
Francesco Gori, head of Pirelli Tyre speaking in Milan earlier this week said the company is bringing forward capacity expansion plans originally outlined in February last year. In 2010 thefore, the company expects to invest euro 300 million in new capacity, almost all of it in low-cost countries.
The company said it intends to make 70 percent of consumer tyres in low cost countries by the end of 2010, up from 61 percent in 2008. The equivalent figures in the commercial sector are 90 percent, up from 87 percent.
In Europe, Pirelli expects to create a new, fully-automated factory in Turin as a green showcase. Also, capacity for car tyres in Romania will be increased by 60 percent. The company also expects to begin constructing a truck tyre plant in Russia by year's end. This will be followed by a car tyre plant. The Russian projects are awaiting paperwork from the authorities to set up a Special Economic Zone, expected to be complete within three months, said Gori.
In Egypt, Pirelli intends to expand its truck tyre unit by 20 percent, while the company expects to double capacity in China for car tyres and to add 20 percent to its truck tyre capcity.
In Mercosur Pirelli wants to add 20 percent to truck tyre capacity and 25 percent in car tyres.
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Presentation material from Pirelli