Pirelli and Russian Technologies signed an Agreement on Implementation of Memorandum on Terms of Joint Venture to extend the collaboration begun in the context of the joint venture now being finalized, for production of tires and steelcord in Russia.
In addition to the plan already announced by the parties to build a new industrial plant in the Russian region of Samara in the second half of 2010, the agreement signed today foresees that the 50/50 joint venture being set up acquires an already existing factory, which is currently being identified among some potentially interesting Russian enterprises. It is foreseen that the acquisition will take place in 2010.
The agreement was signed in Rome in the presence of Russian President Dmitry Medvedev and Italian Prime Minister Silvio Berlusconi, by the Director General of Russian Technologies Sergey Chemezov and the Chairman of the Pirelli Group Marco Tronchetti Provera.
The new industrial hub will be established on the territory of Togliatti industrial technology park (Samara region). The hub establishment will begin as soon as the Russian authorities make the decision on the area for production of automotive components, which is expected in the second half of 2010. The new factory will be built in two phases. In the first phase a factory for radial tires for industrial vehicles will be built. The second phase foresees a factory to manufacture steelcord. At full capacity, the industrial hub will employ about 1,500 workers.
In the five-year period, the new factories together with the expected acquisition will guarantee manufacturing capacity of more than 4 million pieces, as foreseen by the initial plans. Total resources to be committed by the joint venture, in line with what has already been announced, will amount to about 300 million euros.
For more information, visit www.pirelli.com.
