MANRESA, Spain (June 16, 2009)—Pirelli S.p.A. plans to cease production of passenger tires at its Pirelli Pneumaticos S.A. plant in Manresa by year-end, jeopardizing the jobs of about 360 of the plant's 491 employees.
Pirelli intends to keep the facility open as a distribution center for Spain and Portugal, requiring about 130 employees, the company said. It also is evaluating putting some tire recycling activity there as well.
Pirelli did not disclose specific reasons for phasing out tire production at the 85-year-old Manresa plant, located near Barcelona, but said it's part of a larger plan to cut European employment by 1,500 this year.
The company reduced employment at Manresa last fall by 200. The plant has a nameplate capacity of 19,500 units a day.
A company spokeswoman said Pirelli up to now has outsourced logistics for Spain and Portugal.
Pirelli said the company would not hire new workers, but would re-employ existing workers on the new projects.