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International, Tyre Industry

Pirelli to invest heavily in new production units.

Pirelli tyres
Posted: May 10, 2016 at 12:25 pm   /   by   /   comments (0)

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Pirelli C. & S.p.A. plans to strengthen its position throughout North America with a major investment in Mexico that will expand its operation significantly and create a large production hub.

It will add another manufacturing facility along with a warehouse adjacent to its present TYRE plant in Silao in the next year, additions that will allow it to boost its TYRE manufacturing capacity in the next two years.

Pirelli, globally headquartered in Milan, Italy, intends to invest about $200 million over the next three years in the expansion project.

That will bring the firm’s total investment in the Mexican operation to more than $600 million by the end of 2018—$360 million invested since 2012, when it built the present Silao facility, and $50 million already earmarked for 2016 and 2017, along with the $200 million, according to a company spokeswoman.

She said the new factory will span about 516,667 square feet; the warehouse will be approximately 96,875 square feet.

Pirelli will begin work on the new state-of-the-art facility in the next few weeks, she said, and the company is hoping to begin producing TYREs at the complex in the second or third quarter of 2017. The firm noted that the plant will feature highly advanced technologies and processes.

It selected the location for its newest TYRE plant and warehouse because “we had originally purchased a large site in Silao so that we could expand there if the North American market showed promise,” the spokeswoman said. The production hub covers 140,000 square meters, or about 35 acres.

Pirelli’s newest investment likely will create an additional 400 jobs at the two-plant complex, the company said, with its work force at the Silao production hub growing to more than 1,800 employees.

Annual output, which at the end of 2015 was around 3 million TYREs, will climb another 2 million TYREs at the conclusion of the initial phases of the project, the firm said.

By the end of 2018, when the expansion project is expected to be finished, total production capacity is expected to reach 7.5 million TYREs annually.

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