Quality is at the centre of the activity of Pirelli Tyre affecting functions and processes in all the divisions in a coordinated and synergistic manner, from the continuous innovation of products, services, processes and systems to the protection of the integrity, health and well-being of its employees, to safeguarding the environment along the whole cycle of a product’s life and strategic collaboration between suppliers.
This is a commitment that necessitates continuous attention, verification and updating due to the complexity of constant changes of the economy, society and the environment.
In step with the evolution of the market, Pirelli Tyre renews its programmatic commitment with the guidelines of the new 2009 Quality policy. Principles, but also instrumental indications for its implementation, due to the involvement of the people and their fundamental role in the promotion of the culture of quality.
The Board of Directors of Pirelli, which met today, reviewed and approved a new organizational structure for the Group. Coherently with the strategy and aim of the 2009-2011 industrial plan to focus on the core business, the company decided to simplify its organizational structure and regroup all activities directly supporting the core business under a new “Tyre and Parts” Department, to be headed by Francesco Gori, who also maintains his role as CEO and Managing Director of Pirelli Tyre.
The reorganization will allow for significant downsizing of the corporate level structures, with savings, once the reorganization is completed, of at least 10 million euros on an annual basis starting in 2010, and regrouping of operating activities necessary for growth of the core business: tyres (Pirelli Tyre) and filters (Pirelli Eco Technology) within the new Department, thus ensuring one single management of corporate processes. This Department will incorporate the activities of Purchasing, Administration and Control, Pirelli Labs, Advertising and Events, Human Resources, Health, Safety & Environment (which also reports to the Group General Counsel), and the Service Centers for information technology and administrative activities.
In addition to the new Department, the following will report directly to the Chairman:
the Group General Counsel, Francesco Chiappetta, who will be in charge of, in addition to Legal and Corporate Affairs, Group Compliance, the Risk Officer, Industrial Property, and Security;
the Finance Department, led by Francesco Tanzi, who joins the Group and who will be in charge of Finance, Tax, Budget, Risk Management and M&A. Francesco Tanzi was also appointed by the Board of Directors to be the Manager mandated to draft corporate accounting documents;
the Institutional and Cultural Affairs Department, headed by Antonio Calabrò;
the Image and Brand Extension Department, headed by Andrea Imperiali;
the Investor Relations Department, headed by Valeria Leone;
the Media Communications Department, headed by Maurizio Abet.
The following will also report directly to the Chairman: Maurizio Sala, as Group Controller (also in charge of Administration and Control for Pirelli Tyre); Human Resources, headed by Fabrizio Rutschmann, for HR strategy and senior management HR; Internal Audit, headed by Maurizio Bonzi; Pirelli Broadband Solutions; Pirelli Ambiente and PZero.
In line with the focus on industrial activities, the reorganization includes closing the Operations Department, headed by Claudio De Conto, who managed with skill and authority the roles and functions assigned to him in recent years. Claudio De Conto, who participated in mapping out the above-indicated Group reorganization, will now focus his activity, as CEO Finance, on Pirelli Real Estate. Together with the other CEO of Pirelli RE, Giulio Malfatto, Claudio De Conto will continue to manage the positive turnaround process underway.
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Three agreements for reducing polluting emissions and distributing antiparticulate filters were signed today in Beijing by Pirelli:
with the the Italian Ministry for the Environment, Land and Sea, the Ministry of Environmental Protection of the People’s Republic of China in the presence of the Italian Minister, Stefania Prestigiacomo, Chinese authorities, and the Chairman of the Pirelli Group, Marco Tronchetti Provera. The agreement foresees collaboration among the three parties in development of projects for distribution of filter systems for reduction of particulate emissions from diesel vehicles already in circulation (‘retrofit’) and introduction of technologies and advanced products, as the Pirelli products have been shown to be following tests and pilot projects already completed. Part of the environmental cooperation program launched by the two ministries in 2000, the agreement focuses on the five provinces recently singled out by the Chinese government for adoption of measures to limit circulation of polluting vehicles, among which Shandong (the location of the Pirelli plant).
between the Italian Ministry for the Environment, Land and Sea, the Municipality of Beijing and Pirelli Eco Technology to support installation of filters on polluting vehicles circulating in Beijing, is part of this commitment. The agreement follows the completion of a pilot project launched in 2008, which brought homologation of the filters produced by the Pirelli Group, thanks to their particular technological characteristics. The city of Beijing has already ordered a significant quantity ofPirelli Eco Technology filter systems which will be fitted on buses in the capital city.
with Hixih Group(previously the Yinhe Group), already a partner of Pirelli since 2005 in tyre manufacturing, to build a plant for manufacturing of filters in Yanzhou, in the province of Shandong.
The new factory, whose construction is expected to begin in the first quarter of2010, will be located in the same area where the manufacturing sites developed by the two partners for production of truck and car tyres were built, and will thus create a diversified industrial hub able to profit from synergies in manufacturing and distribution of the two products. The investment, already included in the 2009-2011 industrial plan, will take into account the evolution of the market and could reach 50 million euros in three years, with manufacturing capacity of around 100,000 filters per year and approximately 1200 employees. The industrial site currently uses advanced manufacturing technology and represents a manufacturing, logistics and commercial hub for the entire Asia-Pacific region for the Pirelli Group. Today about 60% of Pirelli’s overall production in China is for the local market, while the remaining 40% is exported to other Asia-Pacific markets.