Pirelli starts production at second Brazilian plant

FEIRA DE SANTANA, Brazil (Sept. 18)—Pirelli S.p.A. has started production of radial passenger tires at a $120 million plant in Feira de Santana that will become a primary source of tires for Pirelli Tire North America Inc. The facility is located adjacent to Pirelli's existing Feira de Santana factory in the state of Bahia, which makes bias-ply passenger, light truck and medium truck and bus tires, Pirelli said. The new 344,320-sq.-ft. plant starts with a daily output of 2,500 tires and will grow steadily to 7,500 tires by 2005, according to Giorgio della Seta, president of Pirelli's operations in Brazil. The facility employs 360 at start-up. A second-phase expansion, for which no time frame was released, will take daily capacity to 13,000 units at a further cost of $80 million. Pirelli bought the existing Feira de Santana factory in 1986 from Cia. Pneus Tropical.