Coronavirus: Still no production at 2 Pirelli plants

Production at two of Pirelli’s three factories in China remains suspended in response to the spread of coronavirus (COVID-19). The tyre maker reports that its entire expatriate workforce has left the country along with their families, and only the car and motorcycle tyre in Yanzhou remains in operation, albeit at “a reduced pace”.

China accounts for about 12 per cent of Pirelli’s global sales. The company anticipates that coronavirus will impact upon its adjusted EBIT to the tune of around 30 million euros in the first quarter of 2020, however it expects this to reabsorb this during the year. Should the crisis continue, Pirelli will update its estimates when it presents figures for the first quarter of 2020 in May.