Strategy by business segment


In the Industrial segment, the radial truck tyre market, in particular, between 2011 and 2015, is expected to grow in volumes by an average of 5.1% per year to 165 million pieces at the end of the period.

Pirelli aims for a technology based leadership in key markets, with a focus on rapidly developing economies, and from the development of fleet assistance with ever more personalized services. In the truck segment, the introduction of all new products based on latest generation SATT technology is foreseen. This technology was created by Pirelli and has become the standard for low profile ranges. It enables longer tyre life and the optimization of wear levels, in Agro, radial tyres will be introduced in South America. 80% of sales are expected to derive from the Replacement channel.





  • In South America, where there is growth in tyre imports due to a lack of local capacity, Pirelli recently announced plans for the construction of a new plant of radial truck tyres in Argentina.
  • In the Emea area, where growth is driven by Turkey and Egypt and the European market is typified by stringent labelling regulation which will reduce competition from low cost imports, Pirelli expects to introduce in this area the 01 series, which will fully respond to new European regulations, and an increase of production capacity in Egypt.
  • In China, which represents the major truck tyre market in the world, demand is shifting towards longer wearing tyres rather than low price tyres. In this area, the strategy foreseen is one supporting retread tyres and a focus on service and assistance to fleets and vehicle concession holders.


The investment foreseen in the truck+agro segment, in the period 2012-2014, is over 400 million Euro and will deliver a capacity increase from 6 million pieces in 2011 to 6.8 million pieces in 2015, with an average annual increase of 4% for radial tyres, partially balanced by a reduction of conventional ones.






 


Last Revised: 26 Apr 2012