Market and product
Pirelli Takes Wraps Off $300 Million Mexico Plant
Pirelli SpA formally opened its new tire plant in Silao, Mexico, with a wide range of dignitaries on hand for the event.
The new Silao plant is Pirelli's first in Mexico and the 22nd worldwide, and is part of the tiremaker’s planned $400 million investment in tire production in that country. The plant, which will produce higher-end performance and SUV tires for the U.S., Canada and Mexico, is to produce tires at a rate of 400,000 per year by the end of 2012, targeting 3.5 million tires per year in 2015.
When fully operational in 2017, production is expected to reach 5.5 million annual pieces.
The initial phase – the current 135,000-square meter building – is part of the $300 million initial investment. Pirelli said another $100 million will be spent by 2017 to increase production.
The plant will employ some 1,000 through 2013, with additional hiring bringing employment to 1,800 in 2017.
Attending the grand opening was Mexico president Felipe Calderón Hinojosa; Pirelli chairman and CEO Marco Tronchetti Provera; Governor of the State of Guanajuato Héctor López Santillana; Mexico’s Minister for the Economy Bruno Ferrari; the Mayor of Silao Juan Tovar Torres; the Director General of ProMéxico Carlos GuzmÁn; and Italy’s Ambassador to Mexico Roberto Spinelli.
“The opening of the new factory in Mexico represents an important step in our international development plan,” said Tronchetti Provera. “This is a country that offers excellent opportunities both because of the positive dynamic of local demand and its strategic position, making it an ideal industrial base to serve the entire NAFTA area, which we think one of the most promising for the success of our Premium strategy.”
Pirelli said the new plant “will augment the factory the group already has in the NAFTA area, in Rome, Ga., specialized in production using MIRS technology.” That plant, the tiremaker said, produces 400,000 tires per year, so with the new plant Pirelli’s North American production “in 2015 will be 3.9 million tires, rising to 5.9 million pieces in 2017.”
“In fact, Pirelli will be able to increase its capacity to satisfy NAFTA area demand through local production, which in 2011 accounted for 6% and will rise to 11% in 2012 and finally reach 53% in 2015,” Pirelli said. “The new factory in Mexico will also deliver a reduction in logistical costs, offer more efficient customer service, lead to lower imports from Brazil and free-up production capacity there, which today serves the NAFTA area, allowing Brazilian production to focus on the Latin America area.”
When fully operational in 2017, production is expected to reach 5.5 million annual pieces.
The initial phase – the current 135,000-square meter building – is part of the $300 million initial investment. Pirelli said another $100 million will be spent by 2017 to increase production.
The plant will employ some 1,000 through 2013, with additional hiring bringing employment to 1,800 in 2017.
Attending the grand opening was Mexico president Felipe Calderón Hinojosa; Pirelli chairman and CEO Marco Tronchetti Provera; Governor of the State of Guanajuato Héctor López Santillana; Mexico’s Minister for the Economy Bruno Ferrari; the Mayor of Silao Juan Tovar Torres; the Director General of ProMéxico Carlos GuzmÁn; and Italy’s Ambassador to Mexico Roberto Spinelli.
“The opening of the new factory in Mexico represents an important step in our international development plan,” said Tronchetti Provera. “This is a country that offers excellent opportunities both because of the positive dynamic of local demand and its strategic position, making it an ideal industrial base to serve the entire NAFTA area, which we think one of the most promising for the success of our Premium strategy.”
Pirelli said the new plant “will augment the factory the group already has in the NAFTA area, in Rome, Ga., specialized in production using MIRS technology.” That plant, the tiremaker said, produces 400,000 tires per year, so with the new plant Pirelli’s North American production “in 2015 will be 3.9 million tires, rising to 5.9 million pieces in 2017.”
“In fact, Pirelli will be able to increase its capacity to satisfy NAFTA area demand through local production, which in 2011 accounted for 6% and will rise to 11% in 2012 and finally reach 53% in 2015,” Pirelli said. “The new factory in Mexico will also deliver a reduction in logistical costs, offer more efficient customer service, lead to lower imports from Brazil and free-up production capacity there, which today serves the NAFTA area, allowing Brazilian production to focus on the Latin America area.”
Source:http://rubbermarketnews.net
