MILAN, Italy—Pirelli & C. S.p.A. is strengthening its logistics operations in Europe via the construction of a tire warehouse to serve its industrial hub at Settimo Torinese, in northwestern Italy.
The project, to be carried out in partnership with global investment platform BentallGreenOak and general contractor GSE Italia, will entail the redevelopment of a former Ceat Tyre factory near Pirelli's industrial hub, the tire maker said.
The "LEED Gold-certified" warehouse will span 538,000 square feet and will be leased to Pirelli for 15 years, allowing the tire maker to manage flow of tires produced at the nearby Settimo plant "with greater effectiveness and efficiency."
Until now, tires manufactured at the Settimo Torinese hub have been stored at a site in San Pietro Mosezzo, more than 50 miles away from the facility.
Set for completion in 2021, the new warehouse will be "highly innovative" and will bring Pirelli closer to car makers and export clients.
In the meantime, the warehouse in the Novara Province will be further specialized to support clients in the Italian market.
"With the greater efficiencies in logistics, Pirelli will be able to reduce costs and achieve significant improvements in terms of sustainability," the tire maker said.
The proximity of the warehouse to the production center also will reduce the CO2 emissions linked to tire transfers.