SLATINA, Romania (July 22, 2005) — Continental A.G. and Pirelli S.p.A. have opened their joint venture steel cord production plant in Slatina.
The venture—owned 80 percent by Pirelli and 20 percent by Continental—was created last October, the companies said. Once it's fully operative, the plant will have a yearly output of 30,000 tons of steel cord that will be slated for the fast-growing Eastern European markets.
The new facility will require an investment of $48.7 million (40 million euros) over several years, the companies said.
The venture, Cord Romania, will strengthen Pirelli's position on the European steel cord market along with other plants in Italy, Germany and Turkey. Pirelli also plans to open a high performance car tire plant in Slatina in 2006 to also serve Eastern Europe markets.
The plant builds on Continental's presence in the region and will offer a competitive new source for steel cord, the companies said.