Pirelli’s Burton consultation, MIRS tyre production and the possibility of transferring tyre manufacturing to Carlisle

Following the news that Pirelli is consulting on reorganising part of its Burton tyre production, the company reaffirmed its commitment to both its Burton and Carlisle locations. But could the consultation relating to Pirelli’s Burton MIRS line mean transferring tyre production to Carlisle?

Pirelli’s Burton factory, which is situated alongside the company’s UK head office, has been producing tyres for over 90 years, whilst Pirelli’s Carlisle factory has been in operation for over 50 years. Local planning documents reveal that there have been as many as three MIRS production lines in operation at Derby Road and, as long as 10 years ago, Pirelli was consulting with local town planners in light of the pressures of keeping the site going. One particular entry in a 2011 development brief highlights the importance of Pirelli’s MIRS lines to the viability of manufacturing in Burton at all:

“Whilst many tyre manufacturers such as Dunlop and Goodyear closed their UK operations, Pirelli chose to install a state-of-the-art robotic tyre production system called MIRS (Modular Integrated Robotized System). Two MIRS production lines were introduced (completed in 2001), which were then followed by the additional installation of a third (and even more advanced) production line. The MIRS process introduced a highly efficient tyre production process and required less floor space than equivalent manufacturing processes.”

Indeed, the presence of the MIRS production lines enabled the continuation of tyre manufacturing in Burton within a limited space: “In view of the significant cost to install the MIRS production lines and the ongoing challenges to remain competitive in a tough economic climate, Pirelli have sought ways to maximise the value of redundant land and property assets.”

However, if Pirelli’s UK manufacturing operations were “under significant pressure to compete in an increasingly demanding global market” back in 2011, how much more complex and challenging is the current post-Brexit, Covid-19 affected environment?

According to the 2011 planning documents, “Pirelli UK’s business plan is reliant upon the need to maintain a state-of-the-art production line technology and modernise existing facilities and processes, in order to retain its place in the highly competitive market.” With that being the case, and in light of the wider context, the obvious question is: how much longer will any kind of tyre manufacturing continue in Burton-on-Trent?

And the next questions are: what will Pirelli do with it MIRS technology following a closure of one or all of the robotic tyre manufacturing lines? And what does all of this mean for the company’s larger Carlisle tyre factory?

According to a company statement released a year ago, both facilities utilise the latest technology, using a mixture of automated robots, also known as MIRS (Modular Integrated Robotised System), as well as many highly-skilled people. At the same time, Pirelli claimed that it is “the only premium tyre manufacturer to produce SUV tyres on UK soil.” Previously the company had only promoted Burton as its MIRS manufacturing centre. If those details are correct, one option is that Pirelli will re-locate its MIRS operation to Carlisle, following the same logic deployed with relation to the Burton site, would make the Carlisle site more competitive and therefore support its future. Of course, Pirelli also has factories in Romania and around the world, but bearing in mind Pirelli’s continued investment in its UK manufacturing operations, and that its recent SUV tyre manufacturing claims were made in the middle of the pandemic last year and its connections to domestic OE business such as Jaguar Land Rover, a scenario in which the Carlisle operation becomes the sole focus of Pirelli’s UK manufacturing operations is more likely.