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November 29, 2012 01:00 AM

Pirelli to hike tire production in Romania

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    SLATINA, Romania—Pirelli & C. S.p.A. said it will spend $136 million during the next five years to hike capacity by more than 50 percent for premium tires at its 6-year-old car and light truck tire plant in Slatina.

    The Romanian government has pledged to contribute $47 million toward the project, which will raise the factory's annual capacity to 13 million units by 2017, Pirelli said. The project will involve expanding the size of the plant about 11 percent to 2.35 million square feet.

    The expansion will create 500 jobs, raising employment at the facility to 3,500 by 2017, Pirelli said.

    This is Pirelli's second expansion since opening the plant in 2006. In 2009 it committed $230 million in a five-year period to boost capacity to 10 million units by 2014. Pirelli now expects to hit that production level by year-end 2013.

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