Pirelli tracks savings from ‘competitiveness programme’
Tire maker achieves 30% annual savings target, with higher contributions expected in second half
Milan, Italy – Pirelli has recorded returns from efficiencies of €30 million from 'competitiveness programme' initiatives in the first half of this year.
Equating to 30% of the company’s annual savings target, the figure is “in line with the project development schedule,” said general manager operation Andrea Casaluci.
The Milan-based group expects a higher contribution from efficiencies in the second half of 2023, the Pirelli official added during a first half results call.
The main efficiencies, Casaluci explained 27 July, have stemmed from the adoption of modular design and 'design-to-cost' approaches.
Innovation in these areas, he said, is helping to lower production costs by reducing the complexity of the structure and the weight of tires.
Meanwhile, Pirelli is also implementing projects to improve the production processes, for instance through the use of IoT technology, with particular focus on predictive maintenance.
According to Casaluci, the savings generated by such projects are expected to be concentrated in the second half of the year.
Elsewhere, he said, Pirelli is optimising its logistics and supply-chain processes, while advancing group-wide digitisalation and upskilling initiatives.