Italy's Pirelli Tyre is eying a 10 percent share of China's
premium car tire market as it opened a US$97 million plant
yesterday in Shandong Province.
"We aim to have 10 percent, but this could take at least three
to four years to happen," Chief Executive Officer Francesco Gori
said in an interview in Yanzhou, launching the firm's new
factory.
The plant is initially capable of producing three million tires
a year, with the potential to expand to 10 million later.
Pirelli launched a truck tire plant at the same site in 2005.
The tire plants are operated under a 75-25 joint venture between
Pirelli and Yinhe Group, a local enterprise. Gori said Pirelli has
invested more than US$200 million in China. Yanzhou is its only
manufacturing base in Asia Pacific.
"In addition to the Chinese market, the new plant will serve
Japan, Australia, Southeast Asia as well as North America," Gori
said. "We hope we can export half the production eventually, and if
exports are good, we will increase capacity."
Pirelli previously imported its tires in China. As a premier
high-end tire supplier, Pirelli partners with a range of high-end
and luxury auto makers as original equipment manufacturers. Gori
said it's in talks with several domestic and multinational
companies in China on OEM partnership with the new plant.
(Shanghai Daily November 28, 2007)
