Strategy by business segment
In the moto segment, the total tyre market is envisaged to grow by an average annual rate of 5.3% between 2011 and 2015, with particularly strong growth in the radial segment. In 2015, Pirelli aims to consolidate its leadership through the reinforcement of its role as technological innovator, the growth in Asia of the Premium segment and the maintaining of high levels of profitability.
Thanks to the strength and complementary nature of the two brands in the segment (Pirelli and Metzler) and the continual renewal of the respective product ranges, the plan foresees significant growth in all regions: from Nafta, with its focus on the custom and radial segments, in Asia-Pacific, where in 2012 production of radial moto tyres will begin in China; in Europe where the aim is to consolidate the leadership already achieved. Also under way, is the finalization of a joint venture in Indonesia with PT Astra Otoparts Tbk aimed at the production of conventional motorcycle tyres destined for the Asean markets, where further growth is expected, and for export. Expected investment in the moto business unit over the period 2012-2014 will be over 60 million Euros (excluding the Indonesia project) and increasing capacity to 13 million pieces in 2011 and 11 16 million pieces in 2015, with an average annual growth of 5%. In 2015, 88% of production will be in countries with competitive industrial costs, with an increase of 8 points from 2011.
Moto segment revenues are expected to grow from an expected 420 million Euros at the end of 2011 to 480 million Euros at the end of 2012 and 570 million Euros at the end of 2014, with an average annual increase of 10.5%. The EBIT margin in the Moto segment will rise from an expected 17% circa at the end of 2011 to around 17.5% at the end of 2014.