Investments Up To 2 Thousand Billion Lire To Create e-Pirelli

Pirelli directors have announced a radical transformation of the group with its e-Pirelli Project, into which two thousand billion Lire will be invested up until 2002. The company says that it has contributed to the proliferation of the world wide web with the development of its optical components and systems; in turn, Pirelli will become an e-company, using the net to manage internal processes and develop innovative business. Marco Tronchetti Provera described the Internet as “an opportunity to radically transform all company processes” and he confirmed Pirelli’s determination to be a leader in the e-conomy field, while adding value for shareholders.

The e-Pirelli Project will consist of three main strands, the first of which is development and enhancement of Pirelli’s optical components and systems activities linked to e-technology. Area number two is to use on-line technology in all core activities (tyres, cables and systems) from purchasing through to sales of finished products. Pirelli has begun 20 projects aimed at changing company processes and improving speed and flexibility.

In tyres, the first example of integrated e-business is already at an advanced stage in Bicocca, near Milan and will be presented to press and principal investors in July, as well as the MIRS robotized ‘e-factory’. By the end of 2002, Pirelli says there will be five MIRS factories operating in various parts of the world, with an annual capacity of ten million tyres. The group plans an investment of 500 million Euros on e-manufacturing projects for its Cables and Systems and Tyres operations.

The third area is e-commerce. With regard to tyres, at the recent Geneva Motor Show, Pirelli previewed its P2500 Euro Tyre, the first to be expressly conceived for sale via the Net. The size can be chosen, the price confirmed with the dealer and collection details arranged.

Currently, says Pirelli, it has a 25% share of on-line sales of European car tyres (oe and replacement) and the target by the year end is 50%. The e-Pirelli project has its foundations in a network that links 14,000 workstations in 35 countries. Within two years, the new e-Pirelli network will offer surfing opportunities worldwide to a population of 90 million people.