Pirelli Industrial Strategy

After successfully completing in 2010 the path towards a "pure tyre company" with the divestiture of nonstrategic assets, Pirelli aims to:


  • a greater focus on the Premium Tyre segment (growing faster than the average market rate) and in which Pirelli is leader;
  • a redistribution of production among Rapidly Developing Economies (RDE), Latin America and mature markets, where each of the three areas will account for 1/3 of the Group's profits by 2015;
  • the technological upgrade of production sites and machinery (60% of production by 2015 will come from sites and plants less than 10 years old).

In pursuing this strategy Pirelli will invest € 1.9 billion between the years 2011 and 2015, primarily addressed to increased Premium capacity. In 2015, Pirelli will have a total production capacity of 80 million pieces on the Consumer segment (+44% compared with 2010) and 8 million units on the Industrial (+38% compared with 2010).

On a regional basis, 17% of investments will be allocated to improving our product mix and efficiencies in mature markets, whereas 83% to production capacity in Latin America and RDEs like China, Romania, MEA (Middle East Africa). Amongst Pirelli's key projects:

  • A new manufacturing plant in Mexico producing tyres for the NAFTA region;
  • The Settimo Torinese technology hub;
  • Entry in the Russian market through the Russian Technologies and Sibur agreement currently being negotiated.

This strategy and the planned measures will enable Pirelli to achieve an average annual increase in revenues of 8% over the three-year period 2011-2013 and a progressive increase in profitability with an EBIT margin in 2013 between 10.5% and 11.5%. Moreover, between the years 2010 and 2015 the cash generation will allow Pirelli to:

  • financing capex for 1.9 billion euros;
  • cover financial charges and tax;
  • grant a sound dividend policy (around 40% of 2011-2013 consolidated net profit).

At the end of 2015 Pirelli will be one of the players in the industry with lower debt, and a ratio Net Debt / EBITDA of around 0.6X.
Last Revised: 19 2011