Pirelli Still Plans Investments in Romania - Tire Review Magazine

Pirelli Still Plans Investments in Romania

Pirelli said it still plans to invest another 250 million euros in its Romanian factories by 2011, despite the current economic landscape.

The reconfirmation of the investment plan for Romania comes at a time when Marco Tronchetti Provera, the chairman of the group, anticipates a decline in consumer spending, which prompted Pirelli to lay off 200 people in Italy already, while the output of the Slatina, Romania, tyre plant was down to one third in December.

"For the time being, we confirm next year’s investment, announced in October. The plant in Slatina is somewhat sheltered compared with other facilities because it is a new investment, with a higher technological level and a higher productivity. We have to continue to boost productivity, though," Enrico Malerba, chief executive of Pirelli Romania, stated.

Malerba added that Pirelli was currently experiencing a 30% decline in orders worldwide in the OE segment, and a 15% decline in the orders for the replacement segment. The replacement segment declined less because of orders of winter tires, which drive sales up.

"We expect lower demand next year, at least in the first half. Every survey shows the crisis worsening and peaking at the end of the first half, or even in the second half," Malerba said.

Pirelli has cut production at some of its factories or close some of them for the winter holidays early. "We have sufficient stocks and we had to halt production. This is not a pleasant situation but we took different steps in each country where we own factories, and adjusted to the situation. Therefore, we decided a short-term production halt in December in Romania," Malerba said.

In order to adjust stocks, production at the Slatina plant was cut down to one third in December, after two of the three lines were turned off. The 1,300 employees of the tyre factory were enrolled in a training program for the duration of the production halt, to improve their skills. After the training was completed, the employees were sent home for one week.

Pirelli has said the unemployment period will not extend into 2009 and layoffs were out of the question given that the project was still growing and would attract new investments next year.

"We are not contemplating layoffs at the moment, especially since investments will require new employees, about 300 people, next year. Of course, it is hard to provide estimates for the time being. Our first priority now is to cope with the crisis and then think further," Malerba stated. (Tire Review/Akron)

You May Also Like

RNR Tire Express to give away NASCAR tickets for Father’s Day promotion

The RNR team will be taking submissions until midnight on Sunday, June 16.

RNR Tire Express

For this year's Father's Day promotion, RNR Tire Express is offering one dad and his family an all-expenses paid trip to a NASCAR race that includes "premium" tickets, pit passes, travel accommodations, a driver meet-and-greet with photos, food, drinks and more.

This year’s giveaway will feature all 195 franchise locations across the country. To submit a nomination, visit the Father’s Day in the Fast Lane Giveaway website, where the RNR team will take submissions until midnight on Sunday, June 16, with the grand prize recipient named the following day.

CMA, Double Coin launch dealer portal

This platform provides real-time information and navigation tools for CMA customers to access information and place orders.

CMA_Dealer-Portal
Goodyear names Nicole Gray SVP and chief HR officer

The company also announced Gary VanderLind, senior VP and chief human resources officer, will retire July 1.

Goodyear-Nicole-Gray
Former Firestone executive and grandson of Harvey S. Firestone dies in Maryland

Following service in the U. S. Army, Kimball Firestone joined The Firestone Tire & Rubber Company in 1964 in Akron.

Kimball-C.-Firestone-1400
Continental Tire to rebate customers up to $200 on qualifying tires

Qualifying tires include the ExtremeContact Sport02, ExtremeContact DWS06 Plus and more all-season touring tires.

Other Posts

Over half of drivers say they would delay driving in bad weather

Driving in bad weather is the top challenge for drivers (25%), followed by driving in unfamiliar places (17%) and changing a flat tire (15%).

Stock-Hankook-Gauge-Index-incliment-weather
Schaeffler launches Fun-in-the Sun 10K follower Facebook giveaway

The Fun-in-the-Sun promotional giveaway items include a Weber Grilling Kit, Yeti cooler, JBL speaker and Ray-Ban Aviators.

Schaeffler-giveaway
Michelin North America names Matthew Cabe as new president, CEO

He succeeds Alexis Garcin, whose next position within Michelin will be announced later.

Michelin-Matthew-Cabe
Schaeffler releases TorCon 6L80 Torque Converter

The TorCon 6L80 (TC0017 24247371) is compatible with 2007-2020 GM trucks, vans and SUVs with a 5.3L, with a current VIO of 6,211,856.

schaeffler-torque-converter