Through its 22 plants located in 13 countries, Pirelli can count on production facilities across 4 continents with a capacity of 68 million Consumer tires (Car and Moto) and 6 million Industrial tires (Truck and Agro) in 2012.
Rapidly developing economies with a competitive cost base make up 79% of the production output. This percentage is poised to grow to 85% in 2014, with the contribution of the new factories in Russia and Mexico as well as the capacity expansion in Romania and China.
In the last 2 years Pirelli have already invested 1.1 billion euro (nearly half of 2011-2015 Capex Plan) of which 54% to increase production capacity and 25% to improve production mix and quality. At the end of 2012 Premium accounted for 40% of Consumer capacity, in 2013 the percentage will be 48% with a Consumer capacity of 69 million pieces.
Investments in 2013 are expected at around 400 million euro of which 35% earmarked for mix and quality improvement, 29% for maintenance, logistics, safety and the environment, 36% for the conversion of capacity from standard to Premium and new Premium capacity in low cost countries.
Premium tires production heritage
Pirelli has always been devoted to Premium tires, supplying prestigious carmakers such as Ferrari, Lamborghini, Bentley, Mercedes and Audi; from 2005, the company’s focus on the segment has increased notably.
In the years from 2006 and 2012, Pirelli invested 1.5 billion Euros in improving the production mix of existing factories: standard tires production has been reduced by 13 million pieces, whereas Premium capacity has been constantly increased by enhancing the existing plants and opening new sites in Romania, China and Settimo Torinese in Italy.
Premium capacity (Car and Moto) will grow by 80% from 2011 and 2015 (32 million additional pieces). 64% of Premium capacity will come from newly built plants and 69% will be located in low-cost countries.