ROME, Ga. (Nov. 10, 2010)—Pirelli & C. S.p.A. said it has picked a site in Silao, Mexico, for the passenger and light truck tire plant it's planning to build in the next two years to support projected growth for high-performance tires in North America.
Silao is in the central Mexican state of Guanajuato, about 175 miles northwest of Mexico City and 125 miles east of Guadalajara. The site is within 75 miles of Continental A.G.'s plant in San Luis Potosi and Michelin's in Queretaro.
Pirelli said it will spend $210 million for the plant's first phase, which calls for production start-up by 2012. The factory should hit full capacity of 5 million units a year and full employment of 700 by 2015.
The investment is part of Pirelli's five-year industrial plan, for which the Italian tire maker is budgeting $2.65 billion toward modernizing its manufacturing capacities globally, with a goal of ensuring 60 percent of equipment is less than 10 years old.