By Denna Bowman
Pirelli tyres is celebrating 80 years of doing business in Brazil with the announcement that it is investing $200 million in the South American country over the next three years.
The Italian tyres company has established five factories and a research centre in Brazil and manufactures 90 per cent of its South American production there.
As part of the 2009-2011 industrial plan, the new investments will allow for a 20 per cent increase in manufacturing of tyres for cars and motorcycles.
Added to the $100 million already invested last year, the strategy of strengthening in the area will consolidate the leadership of the Pirelli group in South American markets.
The injection of funds will be targeted one third to research and development and the balance to increasing manufacturing capacity.
Between 2005 and 2008, sales of Pirelli in South America grew by a total of 21%, surpassing in 2008 for the first time the threshold of $2 billion. Brazil’s contribution to this result amounted to more than 60%, with more than $1.2 billion.
Pirelli tyre’s growth target in Brazil in the 2009-2011 three-year period is for a total increase in revenues of 10% compared with 2008, despite a 2009 which, as already announced, will be affected by the strong crisis in demand worldwide.