Pirelli to invest Euro 60 million in Chinese tyre joint-venture
By Liz White, ERJ staff
Milan, Italy-Pirelli has finalised its joint-venture agreement in China with Roadone Tyre Co. Ltd, announced 16 June. The partners have gained appropriate regulatory approvals for the JV, which is to be majority owned by Pirelli, with some 60 percent of the share capital.
The JV will make radial truck tyres in Shandong Province, for both the Chinese market and other South-east Asian countries. Pirelli said in a 1 Aug statement that its initial investment in the joint venture will be about Euro 60 million ($70 million dollars).
The Italian tyre maker said the announcement confirms its strategy of expansion in the Chinese market, where it plans to invest about Euro150 million during the next three years-as announced in November 2004.
Pirelli aims to take a share of the Chinese market, which it sees as the world's fastest growing for road transportation,â€ with total production in 2004 of more than 100 million sets of radial tyres-some 50 percent of China's tyre output, and a 33 percent rise over the previous year.