Pirelli reportedly divides production at Russian plant - DRAFT

Kirov, Russia - Pirelli & C SpA has reportedly separated production of passenger car and industrial tires at its manufacturing plant in Kirov, Russia, as part of a move to become purely a passenger car tire manufacturer.

According to Russian newspaper Vedomosti, the plant, which has been part of a joint venture between Pirelli and Rostec since 2011, will now produce industrial tires.

Citing a person close to Pirelli, the Russian newspaper said the reorganisation of the plant was completed in the first half of 2017.

The production of passenger car tires was allocated to a “separate legal entity”, the report added.

Pirelli is expected to launch an IPO in October, in which it will be presented as purely a passenger car tire manufacturer.

The company was delisted from the Milan Stock Exchange in 2016 following its takeover by ChemChina.

The Italian company split into separate consumer and industrial tire companies renamed its industrial tire business unit as “Prometeon Tyre Group S.r.l.” this April.

Prometeon, as part of the deal with ChemChina, will eventually become part of ChemChina-owned Aeolus Tyre.