Capex and Capacity
Having achieved the investment peak in 2011, Pirelli opens up to a whole new phase of value creation with the new Industrial Plan
The investments made until 2013 allowed Pirelli to achieve the adequate plant size. Plants are:
- Characterised by a progressive technological upgrade, consistent with our focus on Premium, and
- Mainly located in countries with low industrial costs (100% of Industrial and 78% of Consumer production capacity)
Having reached the investment peak in 2011, Pirelli is embracing a whole new phase of value generation and benefits from past investments and from the reorganization of the production setup, including the opening of high-mix plants in Mexico, China and Romania.
The new Plan provides for investments up to 1.6 €/bln over the next four years, accounting for 5% of revenues in 2017 as against 7% in 2013.
82% of total investments allocated to the Consumer segment and 18% to the Industrial.
2013 - 2017 Investments
Through these investments, the overall capacity of the Consumer Business will grow from the current 69 mln pcs per year to 81 mln in 2017, with the Premium segment forecast to increase to 63% of the total production compared with the current 48%. In the Industrial Business, capacity will grow from the current 6.2 mln to 6.8 mln in 2017.