ROME (June 4, 2008) — Pirelli & C. S.p.A. intends to increase capacity for radial truck tires at its Alexandria, Egypt, plant by 50 percent with an investment of $65 million.
The investment will boost annual capacity at the plant to 1 million units, making it the largest site for making radial commercial vehicle tires in the Middle East and Africa, Pirelli said, without disclosing a timetable for the project.
The Egypt factory operates as Alexandria Tyre Co., a Pirelli subsidiary since 1999. The plant covers 3.23 million square feet with 1,000 workers. The investment will focus on advanced product and process technologies that will enable the plant to make tires designed both for emerging markets and Pirelli's main markets in Europe.
Pirelli Chairman Marco Tronchetti Provera made the announcement in Rome at an Italian-Egyptian inter-governmental meeting.
The investment reflects Pirelli's strategy to strengthen its truck tire segment. Most recently it boosted capacity at its Gravatai, Brazil, plant and launched production in China in 2005. Pirelli's other truck tire plants are in Settimo Torinese, Italy, Izmit, Turkey, and Fiera de Santana and Santo AndrÃ&Copy;, Brazil.