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Pirelli has been active in Brazil since 1929, a country holding a leading position in both cars and industrial vehicles markets in the South American continent and one of the major markets worldwide. The Santo André plant that became part of the Group 80 years ago is Pirelli’s production and technological core in Brazil.

80_anni_di_Pirelli_in_BrasilePirelli’s 80 year presence in Brazil was celebrated with a special event & exhibition titled: “80 years of history. A way to leadership” which highlighted the business landmarks of the Group in Brazil where Pirelli is active. Industry first and foremost, but also sports, communications as well as social and cultural events that left a mark within the country’s history and are still often remembered across the world.

Brazil is a critical market for Pirelli’s Tyre business: in 2008, it accounted for 33% of the overall sales that were over 4,1 billion Euros. Pirelli can count on an absolute leading position in both the OEMs and replacement business and the Group has a distribution network of over 600 exclusive sales outlets.

Out of the 23 Pirelli Tyre facilities, 7 are located in the Latin American continent and five of them are in Brazil. 90% of Pirelli Tyre’s Latin American production is made in Brazil, while 35% of the country’s production is being exported.

Pirelli’s R&D is into «sustainable development» in Brazil too, in line with the «Green Performance» goals of its 2009-2011 Industrial Plan. In agreemnt with the local authorities, the Group will purchase natural rubber produced with eco-sustinable processes in the Xapuri region with the purpose of protecting the environment as well as contributing to the economic development of the natives.

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Investments worth 200 million USD and a 10% sales growth between 2009 and 2011. These are the goals announced by Pirelli’s Management during the celebrations of the 80 years of business in Brazil.

Guillermo Kelly,Ceo Pirelli Pneus America Latina, Francesco Gori, a.d. Pirelli Tyre, e Marco Tronchetti Provera, presidente gruppo Pirelli-In line with the 2009-2011 Industrial Plan and with the goal of consolidating the Group leadership in the South American markets, Pirelli will invest in Brazil 200 million USD in the three years from 2009 through 2011 to be added to the 100 million USD already invested in 2008.

These new investments will increase the production by 20% in the car and bike tyre businesses. One third of the overall amount of 300 million USD invested from 2008 through 2011 will be allocated to R&D while the remaining two thirds will be invested in production capacity increase and quality improvement.

From 2004 to 2007, 300 million USD had already been invested in the Brazilian facilites to provide technological innovations, product portfolio updates as well as the increase of production capacity (over 25% in all main segments over that period).

Between 2005 and 2008, Pirelli’s sales in South America grew on the whole by 21%, and in 2008 exceeded for the first time the record figure of 2 billion USD. Brazil accounted for 60% of this result. In the three years from 2009 to 2011, Brazil’s new target for growth is a + 10% vs. 2008, although the 2009 results will be impacted by the strong pressure on demand worldwide.

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