NEW YORK (April 2, 2015) — China National Chemical Corp.'s bid to take control of Pirelli & C. S.p.A. is first and foremost a deal to secure the future of Pirelli's commercial tire business interests, Pirelli CEO Marco Tronchetti Provera said today in a conference call with the U.S. tire trade media.
Combining Pirelli's truck and farm tire assets with those of ChemChina's National Tire & Rubber Co. subsidiary will create an entity that Mr. Tronchetti Provera said would be the fourth largest commercial tire business globally.
Tire Business estimates this entity would generate annual sales of about $3 billion.
Throughout a half-hour conference call, Mr. Tronchetti Provera stressed that Pirelli's consumer tire business — car, light truck/SUV and motorcycle — would remain separate from any of ChemChina's operations.
“ChemChina per se is not a tire company. ChemChina will not have a penny in Pirelli directly.” — Pirelli CEO Marco Tronchetti Provera
He stressed that Pirelli's strategy of producing locally for local consumption will continue, noting the billions of dollars of investment the tire maker has made in modern plants in China, Italy, Mexico and Russia.
Mr. Tronchetti Provera also confirmed that the deal to merge the industrial tire assets of the two companies would go forward — no matter what.