The Pirelli Russia project grows with Rome’s agreement
The acquisition of an already existing factory in addition to building a new industrial plant
Today, Pirelli and Russian Techonologies signed in Rome a new agreement for the production of tyres and steelcord in Russia.
In addition to the plan already announced by the Parties to build a new industrial plant in the Russian region of Samara in the second half of 2010, the new agreement foresees the acquisition of an already existing factory, which is currently being identified among some potentially interesting Russian enterprises. It is foreseen that the acquisition will take place in 2010.
The agreement was signed today in Rome in the presence of Russian President Dmitry Medvedev and Italian Prime Minister Silvio Berlusconi, by the Director General of Russian Technologies Sergey Chemezov and the Chairman of the Pirelli Group Marco Tronchetti Provera.
The new industrial hub will be established on the territory of Togliatti industrial technology park (Samara region).
The hub establishment will begin as soon as the Russian authorities make the decision on the area for production of automotive components, which is expected in the second half of 2010. The new factory will be built in two phases. In the first phase a factory for radial tyres for industrial vehicles will be built. The second phase foresees a factory to manufacture steelcord. At full capacity, the industrial hub will employ about 1500 workers.
In the five-year period, the new factories together with the expected acquisition will guarantee manufacturing capacity of more than 4 million pieces, as foreseen by the initial plans. Total resources to be committed by the joint venture, in line with what has already been announced, will amount to about 300 million euros.
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Top Investor in China award in Milan on Wednesday 25 November as part of the 2009 China Awards organised by the Italy-China Foundation. A special evening which took place under the patronage of Italy’s Ministry for Economic Development and its Foreign Ministry in partnership with Italian Chamber of Commerce in China with a contribution of the Intesa San Paolo Bank, which saw Pirelli, together with other companies including Brembo, Italcementi and Iveco, as protagonists of Italian entrepreneurial activity, which had distinguished itself for the importance of its investments in China. The presentation of 2009 China Awards took place during a charity dinner, the proceeds from which will be donated to the Lifeline Express project, a hospital train that travels the most remote regions of China to cure cataracts.