Pirelli has signed a joint venture to being producing tyres in Russia before the end of 2010.
The details of the venture with Russian Technologies State Corporation are still being finalised, the Italian tyre group said, but the deal has been officially signed in Moscow by Pirelli chairman Marco Tronchetti Provera, and by Russian Technologies director general Sergey Chemezov.
The joint venture will operate in the territories of the Russian Federation and the Commonwealth of Independent States.
The agreements signed between the two companies to date include construction of a new industrial complex for production of car and truck tyres in the Russian region of Samara, whose government supports the project.
The facility will have initial annual manufacturing capacity of about 4.2m units, for a joint investment of about EUR300m. The start of construction work on the factory is expected for Summer 2009.