Pirelli makes Romanian plant its top investment target in Europe

Pirelli tyre manufacturer could bring almost 150 million euros to Romania this year, half of the overall budget allocated by the Italians for investments in 2010, according to ZF estimates.

Italian-held Pirelli will make its biggest investments this year at its Slatina facility, to develop its second plant, company representatives say.

Francesco Gori, chief executive of Pirelli Tyre said this year 300 million euros would go to production facilities in Romania, China, Egypt, and South America, according to Italian daily Il Giornale.

“The growth of the (tyre) market is a two-digit one. These will be the four leading areas (China, Egypt, Romania, and South America), which we will focus on this year and in 2011,” Gori said. He did not specify what amounts were allocated for Romania, but the project for the local base entails 250 million euros in investments by the end of 2011 when the second stage of the Slatina project is expected to be completed.

Pirelli representatives had previously announced that 50 million euros had been allocated for China, 45 million dollars (32 million euros) for Egypt, and 100 million dollars (72 million euros) for Brazil.

According to ZF estimates, the remaining 145 million euros could go to developing local production activities. Pirelli representatives, however, have not confirmed the sum.