YANZHOU CITY, China — Pirelli Tyre S.p.A. expects to begin producing passenger tires by the fourth quarter at a new factory in Yanzhou City, following an estimated $100 million investment during the past two years.
The new capacity will encompass Pirelli´s full range of passenger tires in 14- to 18-inch rim diameters, with an emphasis on the high end of the market, according to Giuseppe Cattaneo, CEO of Pirelli Tyre Co. Ltd. (China), as the firm´s venture in China is now known.
Pirelli plans to market the passenger tires domestically and throughout Asia, Cattaneo said.
At full capacity the factory is designed to produce 4.5 million tires annually. Pirelli declined to reveal the physical size of the plant, built in the same Shandong Province industrial park as the existing truck tire facility, originally built by RoadOne Tyre Co. Ltd.
The addition of auto tire capacity in Yanzhou was part of a three-year, $180 million expansion and modernization project.