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.
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.