Pirelli raises stake in Chinese venture to 90%

ERJ staff report (TB)

Milan, Italy -- Pirelli & C. S.p.A. has raised its ownership stake in its Pirelli Tyre Co. Ltd. (China) venture to 90 percent from 75 percent, paying nearly $40 million for the additional 15-percent stake in the Yanzhou, China, venture.

Pirelli said the move was made “with the aim of reinforcing its business in China.”

The Milan-based tyre maker did not identify the minority partner, but company records show Pirelli entered a tyre manufacturing venture in 2005 with RoadOne Tyre Co. Ltd. The venture also was known previously as Yanzhou Evolution Tyre Co. Ltd.

Pirelli has both consumer and commercial tyre capacity at the Yanzhou site. The company also is building capacity in China for motorcycle tyres but has yet to disclose the site.

From Tire Business (A Crain publication)