EXPECTED 2014 CONVENTIONAL MOTO TYRE PRODUCTION 2 MILLION PIECES, GROWING TO 7 MILLION IN 2016

AT FULL OPERATION THE FACTORY WILL ACCOUNT FOR AROUND 25% OF PIRELLI’S TOTAL WORLDWIDE MOTO PRODUCTION

Pirelli has signed an agreement with Astra Otoparts, the  leading Indonesian automotive components maker, for the construction of a new factory in Indonesia, Pirelli’s first in the country, for the production of conventional motorcycle tyres.

The agreement was signed – on the occasion of a mission to Asia by the Italian Foreign Affairs Minister Giulio Terzi di Sant’Agata – by the Senior Vice President of Pirelli’s Moto Business Unit Uberto Thun and the CEO of Astra Otoparts, Siswanto Prawiroatmodjo. The signing was presided over by Terzi di Sant’Agata, the Indonesian Industry Minister M. S. Hidayat, the Minister for Trade and Investment Gita Wirjawan and the Italian ambassador in Jakarta Federico Failla.

The accord entails the creation of a joint venture in which Pirelli will hold the majority position with 60% of the capital and Astra will hold the remaining 40%. The joint venture will invest a total of 120 million dollars between 2012 and 2014 for the construction of a new factory.

Construction of the new factory, located a short distance from Jakarta, is expected to begin in the fourth quarter of 2012. The site will cover 25 hectares and when fully operated, in 2016, will employ 750 people.

The new factory is expected to become operational from the second half of 2013, with an estimated production of around 2 million conventional moto tyres in 2014 which when fully operational, in 2016, could reach 7 million pieces total. Of these, 3 million will be sold as Astra brands, while the remaining 4 million – equal to about 25% of all Pirelli’s moto production in the world – will carry Pirelli brands (Pirelli or Metzeler). In the context of the group’s ‘local for local’ strategy, 20-25% of the Pirelli brand production made in the Indonesian plant will serve the original equipment and replacement markets of the Asia Pacific area, where the moto market is forecast to grow at an average annual rate of 3.5% from 2011 to 2014. The remaining output will serve all the markets in which Pirelli operates with the exception of South America.

The new facility will allow Pirelli to not only strengthen its moto production capacity – which according to the forecasts of the industrial plan will grow to 16 million pieces in 2015 from 13 million pieces in 2011 – but also to have a direct presence in the Asean area’s biggest economy, which with a circulating pool of 250 million motorcycles is the biggest motorcycle market in the world.  Of this total, 68 million are in Indonesia whose moto market is growing by more than 10% a year. The in-country production capacity will also be free of export duties to Asean markets and reduce the cost of raw material supply thanks to the strong local presence of natural rubber producers.

Pirelli

Founded in 1872, Pirelli is the fifth tyre maker in the world by sales. Present in over 160 countries, at the end of 2011 it counted 21 production facilities on four continents and employed around 34,000 people. Pirelli is a leading producer in the high and ultra-high segments, thanks to its commitment to research and development, an area in which it invests about 3% of total revenues (5.6 billion euro in 2011) or 7% of Premium segment revenues, one of the highest levels in the tyre segment, with the goal of a constant improvement of products in terms of performance, safety and containment of environmental impact. Active in automotive sports since 1907, Pirelli is the exclusive supplier of the Superbike world championship and prestigious mono-brand championships, but above all it is the sole supplier for the Formula 1 championship for the 3-year period 2011-2013.

PT Astra Otoparts Tbk

PT Astra Otoparts Tbk (Astra Otoparts) is Indonesia’s foremost automotive component Company producing components both for Original Equipment (OEM) and Replacement Market (REM). The company counts most major car and motorcycle makers of the world among its clients and has become synonymous with high-quality automotive spare parts. These both satisfy growing local demand and are exported to 49 countries in the Middle East, Asia Oceania, Africa, Europe, and the Americas. The company has established three representative offices in Singapore, Dubai, and Australia. It employs circa 33,000 people and has been listed on the Indonesia Stock Exchange since 1998. Its consolidated revenues in 2011 were 7.36 trillion rupiah (626 million euro).

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Millions of Smiles

This year, 350 children from the city of Slatina took part in the event, as well as others from the southern regions of Romania.

The initiative, which took place as a result of the support of the Municipality of Slatina, FC Internazionale and the volunteers of Onlus Communità Nuova Italia, was much liked by the children, who enjoyed two days of great fun.

For them there were sports competitions and other creative activities, like face painting, a photographic and painting workshop, karaoke and volleyball, all organised at the same time as some exciting football matches.

To the joy of the little participants, there were many surprises and they were presented with trophies, prizes and footballs offered by the local authorities, together with the director of Pirelli Romania, Giuseppe Cangelosi.

And it was in that country that Pirelli gained its most recent recognition in the form of the best marketing award, which it received recently during the China Auto Aftersales Summit Forum.

The prestigious award was presented to Giovanni Angelo Ponzoni, Pirelli’s director of marketing in the Asia-Pacific area, who was visibly pleased to receive this authoritative recognition. He said, “We are honoured to have won the best marketing award, which gratifies us and recognises the efforts Pirelli makes in this area.

“We are fully concentrated on our green performance products, a reason for which the F1 teams and many luxury car manufacturers chose us”, Mr. Ponzoni continued. He concluded by recalling Pirelli’s strong commitment in China, saying, “Over the next few years, Pirelli will continue to invest in the development of its products, brand marketing and technological innovation in the Chinese market and in general throughout Asia”.

Entry into its Hall of Fame is conceded each year by John Deere only to those suppliers that have confirmed the excellence of their products and services over a five year period. Pirelli Agro Brazil has won the North American company’s world excellence award as best supplier for the fifth consecutive year.

“This is a most important moment in the history of our partnership”, said David Everitt, president global tractor and turf production at John Deere. “Pirelli enters our Hall of Fame: only a few companies in the world have reached that level of performance and our hope is to further reinforce our partnership through development programmes in other geographical areas”.

It is the first time that a tyre supplier has received such prestigious recognition and it is an achievement of great satisfaction to our business unit specialised in the production of tyres for agricultural machines, earthmovers and forklift trucks.

“If we have been able to achieve such a coveted award it is thanks above all to the great professionalism of our Agro BU team in Brazil. It is a distinction that must further stimulate us for the challenges that lie ahead”, commented Mario Bernabai, commercial director, AGRO/EM BU.

The presentation ceremony took place on 3 March at Moline, Illinois, in the United States, home of the John Deere headquarters.

The award was presented to Fernando Ruoppolo, OE director, Pirelli Latam and Mario Bernabai.

From left:

Mark Burton (JD), Larry A.Meeske (JD), Rangel Mattia (JD), Fernando Ruoppolo (Pirelli), Mario Bernabai (Pirelli), Luciano Alberto Silva dos Santos (JD), Gary Danelser (JD)

In the six tests carried out in the wet, P Zero turned out to be unbeatable in braking from 100 kph, driving safety and handling and very good under aquaplaning. Commented the experts of Auto Zeitung, “The P ZERO shines in the wet with an incredibly high grip. It is the fastest and grippiest tyre and was also the best in the braking test”.

P Zero also convinced Auto Zeitung in the seven tests in the dry: “The Pirelli is among the absolute top and impresses with very high cornering speeds and directional stability”.

So the ultra-high performance Pirelli merited the accolade “highly recommended”, confirming its already acclaimed leadership on the world’s roads and Formula 1 circuits.

Pirelli will underwrite the creation and protection of 26,936 square metres of forest in Italy’s Ticino Park and 5,015 square metres in Madagascar. They will generate a carbon credit that will totally compensate for the emissions produced at Vizzola, the network of tracks used by Pirelli Test Department and the car manufacturers in tyre/car development work and by the racing driver school plus other organisers of events linked to the automotive world.

This initiative is part of the Impact Zero project of Lifegate, the first in Italy to firm up on the intentions of the Kyoto Protocol, quantifying the environmental impact of activities, companies, products and people and helping to reduce and compensate for CO2 emissions with the creation and protection of new forests in Italy and the rest of the world.

It is to them that the photography exhibit ‘Workers’ is dedicated. The exhibit was organised by the Pirelli Foundation and depicts the entrepreneurial and technological soul of Pirelli’s Settimo Torinese facilities through the faces of the men and women who work there. Seventy faces will be on display from 12 September to 10 October at La Giardinera, Settimo Torinese, faces that show intelligence, energy and skill, as well as pride in the good work they do for Pirelli.

Workers
The history and future of Pirelli in Settimo Torinese in the faces of those who make it
A Pirelli Foundation project
Photos by Carlo Furgeri Gilbert

La Giardinera, via Italia, 90 bis – Settimo Torinese
Thursday & Friday, 3pm to 7pm
Saturday & Sunday, 10am to 12 noon / 3pm to 7pm
Admission is free
www.fondazionepirelli.org

The FIA (Fédération Internationale de l’Automobile), the Teams, and Formula One’s organising body, have chosen Pirelli as their exclusive supplier, based on the specific proposals from the Italian company to guarantee technical and operational stability to the competitors.
Pirelli will provide teams with six different types of tyre for the season: four slicks, with different compounds for various types of dry surfaces, one rain tyre for heavy rain, and one intermediate tyre for damp conditions or light rain.
Pirelli is also proud to announce that it will supply for the three-year period (2011-2013) the GP2 World Series in addition to a tyre supply agreement starting from the current year for the inaugural GP3 series. Pirelli will consequently become the single supplier to all the most prestigious racing championships in the world from 2011.
The last Grand Prix victory claimed by Pirelli was the 1991 Canadian Grand Prix, with Nelson Piquet driving for Benetton.