Pirelli Set to Expand Its Romanian Tire Plant

Romania: Pirelli Tyre S.p.A. plans to expand its tire manufacturing plant in Romania and increase its production by around 50 percent by 2021, it also plans to add production for motorsports tires which are specially designed for Formula One.

Pirelli plans to invest around USD222 million for expansion of its Romanian plant, which will add 538,000 square feet to its existing 2.26 million sq.-ft. plant. The company plans to produce 15 million tires after the expansion from its current 10 million tires, the plants expansion is also anticipated to generate 500 new jobs in the country over a period of next five years.

Mr. Tronchetti Provera, Pirelli Executive Vice Chairman and CEO called the plant, “Key logistics and commercial hub for all of Eastern Europe” and said the region’s ability to attract and support international investments “demonstrated by the country’s institutions which sees Italy as its second commercial partner and one of the most important in terms of investments.”

According to a recent report published by TechSci Research, “Romania Tire Market Forecast & Opportunities, 2021”, Romania is one of the largest countries among Balkan Peninsula nations. With five manufacturing plants involved in the production of passenger cars and commercial vehicles, Romania is one of the leading automobile manufacturers in the Central and Eastern Europe (CEE) region. As a result, in addition to domestic players, various global tire manufacturers such as SC Continental Automotive Products S.R.L., Michelin Romania S.A. and S.C. Pirelli Tyres Romania S.r.l. are engaged in selling tires in the country. In Romania, overall motorization rate (passenger car and commercial vehicles) increased from 251 per 1,000 inhabitants in 2013 to almost 264 per 1,000 inhabitants by 2014.

As per TechSci Research, the expansion of the Romanian tire plant is anticipated to expand the company’s product portfolio in the country’s tire market. The move is also expected to increase the company’s customer base in Romania, which is significantly anticipated to support the market share of Pirelli in the country.