Pirelli

Pirelli to Boost Capacity in China

Within the next two years, Pirelli will double capacity at its Jining factory in China’s Shandon province, to ten million tyres per annum.

The tyre manufacturer’s chairman, Marco Tronchetti Provera discussed the capacity expansion during a China-based interview with Bloomberg TV, as part of a 300 million euro investment in China to be made over the coming three years.

Pirelli has previously posted its investment in the region in 2009 due to the recession.

Projected 2011 sales growth for the Asia region has been revised from 15 per cent to 20 per cent due to increasing demand for more expensive vehicles in China, Tronchetti Provea stated.

During 2010, passenger car sales in China increased 33.2 per cent, with a total of 13.76 million vehicles sold. China currently accounts for seven per cent of the Italian tyre maker’s sales, with Pirelli predicting an increase to ten per cent within two years.