MILAN, Italy (Dec. 21, 2009)—Pirelli & C. S.p.A. has secured $72.5 million in financing from the European Investment Bank that it plans to use to help pay for a previously announced capacity increase at its car and light truck tire plant in Slatina, Romania.
Pirelli disclosed in October 2008 plans to invest more than $360 million through 2011 at its tire, steel cord and particulate filter plants in Romania. Pirelli has not disclosed the scale of its expansion plans for the 3-year-old tire plant, but environmental impact documents available from the EIB state Pirelli's intention is to double the plant's capacity, which earlier Pirelli said was to be 5 million units a year by year-end 2009.
The parties did not disclose the loan's length or terms.
The new financing deal consolidates the relationship between Pirelli and the EIB, which granted the Italian tire maker a $149 million loan in November to support environmentally related tire research and development projects through 2012.
The EIB is the European Union's financing institution, whose purpose is to contribute to the integration, balanced development and economic and social cohesion of the EU's member states by financing sound investment.