MILAN, Italy — Faced with international sanctions on products manufactured in Russia, Pirelli C. & S.p.A. is planning to use factories in Romania and Turkey to produce tires for European markets that it previously sourced from its plants in Russia.
Pirelli outlined its plans in its first-quarter financial results.
The company said traditionally up to half of the tires produced at its factories in Kirov and Voronezh, Russia, were exported to markets in Europe. Combined, the plants have rated capacities of 8 million tires a year, 85% of which are "standard" passenger tires.
As announced earlier, Pirelli has suspended investments in its factories in Russia, with the exception of those intended for safety and is "gradually limiting" activities.
In its quarterly earnings statement, Pirelli said Russian production will be directed at the domestic market in compliance with international sanctions, which ban the import of Russian finished products into the European Union and the export of certain raw materials to Russia from the second half of the year.
In response, the firm plans the "gradual activation" of supplies of finished products from plants in Izmit, Turkey, and Slatina, Romania, to replace Russian exports to European markets.
In Russia, the company will mainly use local raw material suppliers to replace materials imported from European suppliers.
In 2021, Russia accounted for 3% of Pirelli's global revenue and approximately 11% of the group's car tire production capacity.
The plant in Slatina is rated at 13.5 million passenger tires a year, while the Izmit factory's capacity is rated at 7 million car and light vehicle tires as well as Formula 1 racing tires.
