MILAN, Italy (Oct. 7, 2004) — Pirelli S.p.A. and Continental A.G. have agreed to set up a steel tire cord joint venture in Romania to be built in Slatina near a Pirelli power cables factory.
Pirelli will own 80 percent of the venture, Cord Romania S.r.l., which will have annual output of 30,000 metric tons at full capacity in about three years, Pirelli said. Conti and Pirelli will invest $49 million in the venture, which will employ 350 at full capacity.
The investment will allow Pirelli to compete more effectively in the growing eastern European marketplace and strengthen its position in the European steel cord market, the Italian company said. The Romanian plant will complement the firm's existing cord factories in Figline Valdarno, Italy, Merzig, Germany, and Izmit, Turkey.
Continental operates a passenger tire plant in Timisoara, Romania, where output is expected to hit 10 million units this year.