Pirelli announces investments of over 250 million euros over the next three years in Latin America – already included in the 2017-2020 business plan presented to the financial community last year on the occasion of the IPO – as part of its global company strategy focused on Consumer tires in the segment High Value. The announcement was made by the executive vice president and CEO Marco Tronchetti Provera, on the occasion of the presentation of the pole 4.0 of Feira de Santana in the Brazilian state of Bahia, in the presence of senior vice president manufacturing Francesco Sala and senior vice president region Latam Paul Hembery.
In line with the group strategy, investments will be directed to the constant modernization of local production facilities – as evidenced by the Bahia pole presented today – and to the development ofHigh Value (Prestige, New Premium, Specialties and Super Specialties tyres) also through the partial conversion of production Standard in High Value. This reconversion, carried out in the three-year period 2018-2020, will represent approximately 20% of the High Value of the region at the end of 2020. The investments will make it possible to satisfy the demand for high-end tyres both of the local markets and, in particular, of the Nafta area of which Brazil represents one of the integrated sources of supply. Over the past 4 years, Pirelli had already invested around 250 million euros in Latin America – online with the 2013-2017 business plan – for the constant technological updating of the factories, the adaptation of the plants to the new local production New Premium and the launch of the production process digitization project.
With rCables in the Latam area grew by 11,1% last year at 915,7 million euros, today South America, where Pirelli has been present for over a century and has 5 factories, represents around 17% of total revenues (equal to 5,35 billion euros in 2017) and one of the macro geographical areas strategically most relevant to the group.
The current factory in Feira de Santana, in the state of Bahia, is the most recent production plant among those held by Pirelli in the whole area. Built in 1976 and expanded in 2003 (following Pirelli's entry into the perimeter in 1986), the factory has always used the most modern machinery and the most advanced processes and in recent years, especially during 2017, has seen its current transformation into the first Pirelli 4.0 technology hub in Latin America with new digitized processes and the use of advanced technologies. Similarly, the other factories in the area are also progressively affected by the process of digitization and modernization of the plants, in line with the group's strategy.
“Latam has always been a key area for Pirelli. In Brazil, in particular, we boast an almost century-old presence, extraordinary brand awareness and market knowledge that allows us to grasp consumer trends and offer the most suitable products for their needs in all market segments. The investments announced today will allow for a further improvement in the production standards of local factories, in line with Pirelli's global High Value strategy and its digital transformation, which is an integral part of it and which today represents an essential element of competitiveness". said Marco Tronchetti Provera, Executive Vice President and CEO of Pirelli.
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