LUXEMBOURG (June 10, 2002) — The European Investment Bank is evaluating a proposal to fund up to $39 million toward the modernization of a Pirelli S.p.A. plant in Brazil. Pirelli Pneus S.A., the Brazilian subsidiary, has drafted a $136.6 million plan to add radial capacity to its 25-year-old Feira de Santana plant.
Acquired by Pirelli in 1986 from Pneus Tropical, the factory has a nameplate capacity of 1,200 units a day of bias-ply car, light truck and medium truck tires. Employment is 230.
In a document posted on the European Investment Bank (EIB) Web site, the bank says the project is “under appraisal.”
Luxembourg-based EIB is the financing institution of the European Union. It exists to raise funds in the open markets, which it then directs on “most favorable” terms to financing capital projects according with the objectives of the EU. Outside the EU, the EIB operates under European development aid and cooperation policies.