Pirelli to invest $200 million in Brazil

ERJ staff report (DS)

Milan, Italy -- Pirelli has said it will invest a further $200 million in Brazil between 2009 and 2011, with the aim of becoming the absolute leader in the South American tyre industry.

The new investments bring Pirelli's total investments in the region to $300 million in the period 2008 - 2011. The Group already invested approximately 300 million dollars in Brazilian factories between 2004 - 2007.

The new investments will allow for a 20% increase in manufacturing of tyres for cars and motorcycles. The 300 million dollars of total investments in the 2008-2011 period will be targeted one third to research and development and the remainder to increasing manufacturing capacity.

The new development plans were illustrated during a press conference held at the manufacturing site of Santo André, in the State of Sao Paulo, and attended by the Brazilian Minister of Development, Industry and Foreign Trade, Miguel Jorge, representatives of local institutional authorities, the General Consul of Italy in Brazil, Marco Marsilli, the Director of Istituto nazionale per il Commercio Estero (Italian board of foreign trade) in Sao Paulo, Giovanni Sacchi, the Chairman of the Pirelli Group, Marco Tronchetti Provera, the CEO and Managing Director of Pirelli Tyre, Francesco Gori, and the CEO of Pirelli Pneus América Latina, Guillermo Kelly.

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Press release from Pirelli