ERJ staff report (TB)
Slatina, Romania) - Pirelli & C. S.p.A. will invest $136 million over the coming five years to expand capacity more than 50 percent for premium tyres at its 6-year-old car and light truck tyre plant in Slatina. The investment was trailed a year ago, but no details were given at the time. The latest reports add detail to the earlier announcement.
The Romanian government has pledged to contribute $47 million toward the project, which will raise the plant's annual capacity to 13 million units by 2017, Pirelli said. The project will involve expanding the size of the plant about 11 percent to 2.35 million square feet.
The expansion will create 500 jobs at the plant, raising employment there to 3,500 by 2017, Pirelli said.
Pirelli announced the expansion recently during a ceremony at the factory. In attendance were Romanian Prime Minister Victor Ponta, Pirelli Chief Technical Officer Maurizio Boiocchi, Pirelli Operations Director Giuliano Menassi, Pirelli Romania CEO Giuseppe Cangelosi and Italy's Romanian ambassador, Mario Cospito.
This is Pirelli's second expansion project since opening the plant in 2006. In 2009 it committed $230 million over five years to boost capacity to 10 million units by 2014. Pirelli now expects to hit that production level by year-end 2013.
From Tire Business (A Crain publication)