Pirelli secures EIB loan for R&D projects

ERJ staff report (TB)

MILAN, Italy (Nov. 20, 2009) - Pirelli & C. S.p.A. has secured $149 million in financing from the European Investment Bank (EIB) to support environmentally related tire research and development projects through 2012.

Specifically, Pirelli said the loan will support R&D into product and manufacturing process innovation for reducing the environmental impact of tires and improving their performance and safety standards related to innovative materials and components.

The parties did not disclose the loan's repayment terms but said the loan is part of a $300 million credit line Pirelli secured with the EIB in July.

“The loan from EIB,” said Pirelli Chairman Marco Tronchetti Provera, “represents a contribution to and an important recognition of the research activity of Pirelli….

“…this effort shows us committed to development of products and processes that are more and more ecocompatible - that is, oriented towards adopting technologies that offer customers not only safety and high performance - but also solutions which are respectful of the environment,” he said.

EIB said the loan reflected its policy of supporting investment in projects that reduce pollution

From Tire Business (A Crain publication)

Press release from Pirelli