Pirelli to invest euro 25 million in the UK

ERJ staff report (DS)

London - Pirelli is investing  around £20 million (euro 25 million) in its operations in the UK, according to an announcement by the UK's deputy Prime Minister, Nick Clegg on Friday 10 August. The UK government will add a further £2 million under its Regional Growth Fund. A press release from the UK government said, “Pirelli has committed to the expansion of the company's activities in the UK. The company is today announcing a £11.4m investment in research and development; creating 37 new and protecting 120 UK jobs.”

A spokeswoman from Pirelli UK confirmed the Government announcement and added that the project will be in two phases: first to develop a new product and then to industrialise the product at the Carlisle plant. The spokeswoman said the project is focussed on the development of new car tyres.

The first phase of the project is a research and development project worth some £11.4 million, which will be fully managed and implemented from within the UK. All the money will come from Pirelli.

The second phase would be to spend a further £9 million to buy machinery and equipment to industrialise the product at the Carlisle plant. Again, the project is funded by Pirelli.

The government money will be used to top up the total investment to around £22.4 million. Pirelli's Carlisle plant makes tyres for cars and SUVs.

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