ERJ staff report (TB)
Milan, Italy -- Pirelli Tyre S.p.A.'s sales in North America grew 25 percent last year to $630 million, and operations in Latin America boosted sales 20 percent to $2.2 billion to solidify the firm's market leadership there.
Pirelli also disclosed construction on its new factory in Silao, Mexico, is on schedule, meaning the unit should start production by the second quarter of 2012. The $210 million plant will provide 700 jobs directly and 300 more indirectly, Pirelli said.
The double-digit sales growth in both regions pushed NAFTA's activities to 10 percent of Pirelli's global revenues and Latin America's to 34 percent, the company reported.
Pirelli's seven plants in South America-one in Argentina, five in Brazil and one in Venezuela-produced more than 400,000 metric tons of tyres for cars, SUVs, vans, agricultural vehicles, industrial vehicles, trucks, buses and motorcycles. This represented approximately 40 percent of Pirelli's global output.
The tyre maker's factories in Brazil account for about 90 percent of production in the region and of this, more than 35 percent is exported to markets in the NAFTA, both to car makers and Pirelli dealers.
Pirelli said it will invest $300 million through 2013 at plants in Brazil and $100 million at its plant in Argentina to boost capacity and enhance quality. Pirelli also has budgeted $40 million for its Latin American plants for protection of the environment, and health and safety in the workplace.
From Tire Business (A Crain publication)
Press release from Pirelli