Pirelli has confirmed its presence in Brazil through a reorganisation of its manufacturing structure to accelerate focus on high value products and improve the competitiveness of its sites in the country.

The supplier foresees a EUR120m (US$134m) investment plan for the period, 2019-202,1 for the modernisation and reconversion of its production plants from standard to high value and the ongoing improvement of the mix and quality in the factories of Campinas (San Paolo) and Feira de Santana (Bahia).

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These investments are in addition to the EUR320m already deployed from 2013-2018.

In particular, the reorganisation calls for the strengthening of the factory in Campinas, which today only produces car tyres, through the transfer of Moto tyre production from the plant in Gravataí (Rio Grande do Sul), which will be completed by mid-2021.

The reorganisation will facilitate the creation of an industrial hub to serve the markets of Latin America, which will be dedicated to production of car, moto and motorsport tyres, with a growing focus on high value. 

The operation will see will around 300 taken on by 2022.

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At the same time, with the goal of finding an agreement with unions during the period of production transfer, the supplier will take what it refers to as “all possible actions” to mitigate the social impact at the Gravataí plant, which today employs around 900 people.

In particular, as a first step on this path and considering the confirmation received from Prometeon Tyre Group Brazil of its industrial presence in Gravataí, Pirelli and Prometeon Tyre Group will reciprocally evaluate actions aimed at mitigating the effect on employment, compatibly with the conditions of the local market and the competitiveness of the respective businesses.