Pirelli to offset rising costs amid Russia-Ukraine crisis

MILAN— Pirelli & C. S.p.A. aims to mitigate the increasing cost-impact of the Russia-Ukraine crisis with measures to increase the efficiency of its production plants as well as moves to raise prices for its tires.

The current intensification of the Russia-Ukraine crisis is leading to an increase in oil and energy prices, according to Marco Tronchetti Provera, executive vice chairman and CEO.

"This requires the rapid implementation of mitigation actions on tire pricing and efficiencies," the Pirelli boss stated on a Feb. 23 results conference call.

The Italian tire maker, he said, is reducing consumption and accelerating the use of renewable energy in its plants and has also implemented hedging contracts to counter major price fluctuations

Tronchetti Provera concluded that Pirelli was putting in place all the actions needed to counter "the potential impact of oil and energy on the Russia Ukraine crisis.

"We are implementing a dynamic mitigation plan, with commercial and technical counter-measures," he said.