Pirelli updates on global growth

ERJ staff report (DS)

Milan - Pirelli has provided updates on its current expansion projects around the world.

The company said, “The factory in Silao, Mexico has just been opened and already manufactures Pirelli tyres for the NAFTA market, whilst in Argentina the Pirelli centenary was celebrated with the announcement of extension work to the Merlo factory before President Cristina Fernández de Kirchner.

The new investment mainly regards the production of SUV and light truck radial tyres and the transfer of latest-generation green performance principles to the entire production line. Targets include a 20 percent increase in output reaching 6 million tyres per year and the creation of 300 new jobs.

In China, said Pirelli, its plant in Yanzhou in the Shadong province will in 2014 reach a manufacturing capacity of 10 million car tyres per year. The Truck and Moto lines will also achieve increased output. The investments in China also regard distribution, indeed, it is planned to triple the size of the sales network to 3,000 outlets over the coming years.

The 400 million dollars already invested in Pirelli's Chinese manufacturing facility in Yanzhou will increase by a further 200 million dollars by the end of 2014. Upon completion of the project, the Shandong province works covering 180 thousand square metres and with more than 2,800 employees will become the largest in the entire Pirelli organisation.

Pirelli said it has signed an agreement with PT Astra Otoparts to build a new motorcycle tyre factory. The site will extend over 25 hectares and provide 750 jobs when it reaches full operating capacity in 2016.

On a similar note, an agreement has been signed to acquire a 60 percent stake in Campneus, one of Brazil's major tyre distribution chains, in order to heighten Pirelli's profile in the Brazilian market.

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Press release from Pirelli (project updates)

Press release from Pirelli (Yanzhou plans)