Strategy and targets by geographical areaa
Pirelli is number one in South America thanks to its leadership in Original Equipment in all segments and first position of its brand.
By 2015 Pirelli aims to strengthen its regional leadership by:
- introducing new Premium products, the demand for which is destined to grow thanks to the increase in the production of SUVs and medium-large pickups in the Mercosur area; ;
- the opportunities due to the growth of the premium segment in Original Equipment;
- the expansion of the direct distribution network thanks to the acquisition in April 2012 of 60% of Campneus, one of the main tyre distribution networks in Brazil;
- greater production capacity in Car and Moto, previously destined to exports in the Nafta area, which will be progressively served by new factories in Asia and Mexico;
- the launch of a new radial truck tyre factory in Argentina.
In Argentina the new plan for the construction of a radial truck tyre factory will entail investment of 300 million dollars and the launch of production at the end of 2013, with a capacity of 700,000 tyres a year by 2016 destined to satisfy the growing demand for radials in Mercosur.
This will allow Pirelli to:
- become market leader in all truck segments
- produce with competitive industrial costs
- optimize logistics
In the period 2011-2014 revenues will rise from 1.96 billion Euros in 2011 to 2.5 billion Euros in 2014, with an average annual growth of 8.4%.
The Ebit margin is expected to be mid-teen over the period.