Net capital expenditures amount to Euros 285 million (Euros 262 million in 2007) and, in keeping with Group strategy and market demand, were used to develop innovative processes, increase production in China and Romania and to develop new "green performance" products.
In the sphere of workers’ health and safety and the environmental management of our factories, capital expenditures almost doubled compared to the prior year.
- Cars: to meet market demand, it was decided to augment top range tyre production in Europe and to consolidate the actions to delocalize production to geographical areas with low costs, focusing in particular on China, Romania and Brazil. In addition, in Turkey, a new production unit for Motorsports tyres was opened.
At the Settimo Torinese factory, work began on the construction of the new industrial technological hub.
- Truck - All Steel: actions aimed at delocalization proceeded with the increase of production in the low-cost areas of China and Turkey and the start-up of projects in Brazil and Egypt. In line with Group strategy, measures were implemented to improve product technology and quality.
In the field of innovative processes, installation of machinery for producing products with the innovative SATT (Spiral Advanced Technology for Truck) technology derived from Pirelli’s MIRS technology continued.
- Motorcycles: in line with Group strategy and market demand, new products were developed and presented and activities began to increase production capacity in Brazil.
- Steel Cord: the plan to increase production of brass-coated steel wire in Brazil and activities to develop prototypes for new products and materials in Italy are nearing completion.
San Paolo, Brazil – Industrial vehicle tyres factory