Pirelli seeks funds for second plant

Tyre manufacturer Pirelli is preparing to start construction
of its second production facility in Slatina, near the plant built
in 2004. The project of the Slatina plant provides for two similar
tyre production facilities. The first plant was built in 2004, with
the twin facility announced at the beginning of this year. The
European Investment Bank (EIB) is currently analysing the granting
of a 50 million-euro loan for the project meant to boost the
Italian company’s production capacity. According to data published
by the EIB, the overall value of the project is 159 million euros.
“The project is aimed at boosting Pirelli’s competitiveness and
production capacity and at enabling it to continue to have a
cost-effective production base, close to Central and Eastern
European markets,” EIB representatives said in a release. Recently
Pirelli secured another loan from the EIB, worth 100 million euros,
dedicated to the financing of projects in research and development
in the 2009 – 2012 period. In May, Enrico Malerba, general manager
of Pirelli Romania, said expansion plans were set for completion in
three years’ time, with the new investment benefiting from a 28
million-euro state aid.