Pirelli inaugurated a new factory in Silao Mexico, last week. Situated in the state of Guanajuato, Mexican President, Felipe Calderón Hinojosa and Marco Tronchetti Provera, Chairman and CEO of Pirelli, conducted the ceremony.
The new tire plant is Pirelli’s first in Mexico but its 22nd worldwide. It will focus on the Premium segment, producing High Performance and Ultra-High Performance tires for cars and SUVs in the local and all Nafta markets.
The factory will have a capacity for 400,000 tires by the end of 2012, rising to 3.5 million when the first phase of development ends in 2015. When fully operational in 2017, production is expected to be 5.5 million units.
Pirelli’s investment will be around $300 million dollars from 2011 to 2015, with an additional $100 million invested by 2017. This will equip it with the company’s most advanced technology and production processes, creating 1000 new jobs by 2013, of which 700 will be direct positions and 300 external jobs. When fully operational, the plant will add a further 700 direct employees and 100 indirect, for a total of 1800 jobs.
In line with Pirelli’s focus on the Premium segment, the production from the Silao will be mainly high-end and very high-end tires, with 30% of production meeting Mexican demand, while the remaining 70% will go to the USA and some to Canada.
The new factory will augment the facility in Rome, GA, which has an annual output of 400,000 tires.
The new factory will reduce imports from Brazil and allow Brazilian production to focus on the Latam area.
The new Mexican factory is one of the most advanced in terms of its environmental impact. A series of sensors have also been installed throughout the factory to reduce water and electrical wastage. And to preserve the environmental balance, Pirelli transplanted around the factory all the trees that were uprooted for its construction.