Pirelli said it intended to invest an average equal of 7% of annual revenue for the 2017-2020 period, 82% of which will be earmarked for the high-value segment.
The company expects to increase its high-value production capacity from 38 million units in 2016 to 53 million in 2020.
The increase will be partially achieved through the conversion of standard-tire lines to high-value capacity, according to the annual report
The company foresees a reduction of 7 million units in ‘standard’ capacity, 3 million of which will be converted to high-value.
The project to covert capacity in Brazil began in 2017, said Pirelli, to serve growing demand in the NAFTA region.
Additionally, Pirelli will increase production capacity for high-value tires globally by 11 million units to achieve the target.
As part of its growth strategy, Pirelli aims to speed up its homologation programme with prestige and premium car manufacturers.
In 2017, the Milan-based company obtained 402 homologations, 324 of which it classified as ‘new premium’.
Also, the company aims to develop “an unprecedented product innovation programme”, which it says will strengthens its specialties and super specialties range.
Between 2017 and 2020 Pirelli intends “to launch up to 18 new product lines with global and regional coverage, including winter products, summer and four seasons, specialties/super specialties plus traditional products.”