MILAN, Italy (Nov. 15, 2004) — Pirelli S.p.A. will invest more than $130 million over three years to build a passenger tire plant in Romania and nearly $100 million to expand capacity at two plants in Brazil.
The Romanian plant, designed primarily for performance passenger tires to meet growing demand from East European markets, will be built in Slatina, adjacent to a steel tire cord plant Pirelli is building there in a joint venture with Continental A.G.
Pirelli did not disclose size, capacity or employment projections for the tire plant, but earlier said the $49 million cord venture, Cord Romania S.r.l., will have annual output of 30,000 metric tons at full capacity in about three years. Pirelli already operates a power cables factory in Slatina.
In Brazil, Pirelli plans to expand its recently opened plant in Bahia and build a steel radial truck tire facility on its Gravatai passenger tire plant site.
In addition, Pirelli said it is moving forward with adding MIRS automated tire capacity at plants in Germany, the U.S. and the United Kingdom. The added capacity will become operational during the first half of 2005.