Pirelli redirects planned Russia investments to other regions

Milan, Italy – Pirelli C. & SpA has announced a series of actions taken to mitigate the effects of Russia's war on Ukraine on its operations in Russia and Europe.

As announced earlier, Pirelli said it has suspended investments in its factories in Russia with the exception of those intended for safety and is “gradually limiting” activities.

In a statement 10 May, Pirelli said it has now directed Russian production at the domestic market in compliance with international sanctions which ban the import of Russian finished products into the EU and the export of certain raw materials to Russia from the second half of the year.

In response, the Italian tire maker said it had identified alternative sources for import and export flows.

This, it said, includes “the gradual activation” of supplies of finished products from Turkey and Romania to replace Russian exports to European markets.

In Russia, the company will mainly use local raw material suppliers to replace European suppliers.

Pirelli operates two car tire production facilities in Kirov and Voronezh, Russia.

The plants have a total output of 8 million units per year, 85% of which are standard tires, and export 50% of products to Europe.

In 2021, Russia accounted for 3% of Pirelli’s €5.3-billion turnover, and approximately 11% of the group's car tire production capacity.

Pirelli operates one production facility in Slatina, Romania where it produces 13.5 million units of passenger car tires.

In Izmit, Turkey, the company runs a factory where it manufactures 7 million units of premium passenger car and light vehicle tires as well as Formula 1 racing tires.