ROMANIA: Pirelli to invest more in Romania
Pirelli Chairman Tronchetti Provera has announced further investment by the company in Romania.
The new investment follows investments of EUR250m over the last five years to create an automotive pole with plants for car tyres, steelcord and particulate filters.
Pirelli's new industrial pole in the automotive sector in Romania is strategic for the company's future growth in the emerging markets of Eastern Europe, and is set to grow further in coming years with total investments that will reach approximately EUR500m by the end of 2011.
Pirelli's Romanian car tyre factory will have annual manufacturing capacity of about 5m units by the end of 2009. A factory for production of steelcord (reinforcement material for radial tyres) has been set up in the Slatina area. By the end of 2008 production of particulate filters for new automobiles in the plant in Bumbesti starts.
The additional investments planned from now to the end of 2011, which amount to approximately 250 million euros, will aim to increase manufacturing capacity of the plants, significantly improving overall competitiveness of the group's European industrial structure. The new project will receive a contribution from the Romanian government up to a maximum amount of about EUR28m.