The tyre market is seeing double digit growth in the first quarter compared, with its weak performance a year before, the chief executive of Pirelli’s tyre unit told a newspaper.
“The market has taken off, there is strong volume growth everywhere even if it compares to a 2009 quarter that was very weak,” Francesco Gori was quoted saying by Il Giornale, according to Reuters. “The growth of the market is double digit.”
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Gori said Pirelli, Europe’s third largest tyre company based on market capitalisation, would invest EUR300m(US$412.4m) in the next few months to increase production capacity in China, Egypt, Romania and South America.
“These are the four areas we are focusing on this year and in 2011,” Gori said.
In Italy, the company would inaugurate its “green performance” tyre plant in Settimo Torinese in the second half of the year. Gori also said Pirelli Tyre was working on several projects linked to the Fiat and Chrysler alliance.
