Pirelli announced the closing for the purchase of a 49% stake in the Joint Venture which owns, through the company Jining Shenzhou Tire Co., a new Consumer tire production plant in China.
As announced on August 1st, the operation cost approximately 65 million euros. The company will also have the right to increase its stake up to 70% in the period between January 1, 2021 and December 31, 2025.
The new plant, which will be managed by the Pirelli management, "will provide the necessary production flexibility in the High Value segment, taking into account the evolution of the Chinese market, the expected developments in the electric car segment and the growing share of approvals obtained in the original equipment in China, Japan and Korea”, reads the note from Pirelli.
In Piazza Affari, the Pirelli share gained 1,6%, clearly beating the performance of the FTSE Mib, up by 0,1%.
