6 Jul 2023
The €21-million deal to buy Hevea-Tec expected to be completed by end of 2023
Milan, Italy - Pirelli is acquiring Brazil-based natural rubber (NR) processor Hevea-Tec for an enterprise value of €21 million, the tire maker announced 4 July.
Claimed to be the “biggest independent processor” in Brazil, Hevea-Tec is expected to increase Pirelli’s supply of NR in the Latin America region.
The purchase, said the Italian group, will ensure continuity-of-supply in the region and provide enhanced operational efficiencies.
The transaction is set for completion by the year-end, subject to approval of antitrust authorities as well as other closing conditions.
Pirelli expects the Brazilian operation to facilitate the launch of innovative projects in the company, aimed at increasing the use of non-fossil-based materials in tires.
The tire major said it “already has plans to increase Hevea-Tec’s production volumes”, but did not provide further details.
Overall, the purchase is expected to further improve Pirelli’s control over its NR supply-chain, reduce CO2 emissions and enable the launch of new FSC certification projects.
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