ROME, Ga. (Nov. 10, 2010) — Pirelli & C. S.p.A. has picked a site in Silao, Mexico, for the car and light truck tire plant it's planning to build in the coming two years to support projected growth for high-performance tires in North America.
Silao is in the central Mexican state of Guanajuato, about 175 miles northwest of Mexico City and 125 miles east of Guadalajara. The site is within 75 miles of Continental A.G.'s plant in San Luis Potosi and Group Michelin's in Queretaro.
Pirelli said it has budgeted $210 million for the plant's first phase, which calls for production start-up by 2012. The plant should hit full capacity of 5 million units a year and full employment of 700 by 2015.
The investment is part of Pirelli's five-year industrial plan, for which the Italian tire maker is budgeting $2.65 billion toward modernizing its manufacturing capacities globally, with a goal of ensuring 60 percent of equipment is less than 10 years old.
Pirelli earlier said the decision supports its strategy to focus on the premium consumer segment in North America, where management expects to report 8-percent annual sales growth through 2013 to about $725 million and achieve double-digit operating income margins.