YANZHOU, China—Pirelli Tyre S.p.A. is spending $200 million through 2014 at its plant in Yanzhou to more than double annual capacity for passenger tires and boost truck tire capacity more than 20 percent.
The investment will make the factory the company's largest.
The project is in addition to the start of production last year at Yanzhou of premium motorcycle tires and Pirelli's involvement as a minority partner in a plant in Yanzhou that makes steel tire cord.
Pirelli disclosed the investments locally in China in April 2012, but the extent of the project came to light internationally only recently after Gregorio Borgo CEO of Pirelli Asia/Pacific, discussed the expansions with Chinese media.
Once completed, the expansion will raise annual auto tire capacity to 10 million units from 4.1 million, Pirelli said, and truck tire capacity to 850,000 units from 700,000. The plant now can make 1 million motorcycle tires, while the steel cord venture is projected to have annual capacity of 16,000 metric tons.