MILAN, Italy (Nov. 4, 2010)—Pirelli & C. S.p.A. said it aims to grow faster than the global tire market during the next three to five years, at an average of 8 percent annually, by concentrating on fast-growing markets and premium tires.
The firm pointed to the Asia-Pacific and Latin America regions as areas of rapid growth, and in line with that, announced it will build a tire plant in Mexico. Pirelli also said that it will modernize its factories so that by 2015, 60 percent of the equipment they use will be less than 10 years old.
“Pirelli has concluded its transformation into a pure tire company and reached its targets ahead of schedule,” said Pirelli Chairman Marco Tronchetti Provera. “In a world that is changing fast and in which new areas of growth are emerging, we have developed a plan which puts the company in the best possible position to compete.”
Pirelli's said it will spend $2.71 billion in its operations between 2011 and 2015, an increase from the $2.14 billion invested between 2006 and 2010, the tire maker said. Fully 99 percent of the capital spending will go to the tire sector, to meet growing demand in the market, in particular in the premium segment, the company said.
The Italian tire maker said it does not anticipate an overcapacity situation occurring in the premium market.
In Mexico, Pirelli will invest $210 million during the next two years to build a plant to produce high-performance and ultra high-performance tires for cars and light commercial vehicles. Production will go to the NAFTA countries, particularly the U.S., and for local consumption.
The new facility will be operational in 2012 and have a production capacity of about 5 million units in 2015, Pirelli said.