Known for its style, speed and performance marketing values, Pirelli & C. S.p.A. is a multinational company based in Milan, Italy, listed on the Milan Stock Exchange since 1922, with a temporary privatization period by the consortium led by the Chinese state-owned enterprise ChemChina.
Pirelli & C SpA has said it will increase tyre prices in Italy by 5 per cent on 1 April, the AFX news agency has reported. According to the manufacturer, the price increases come in response to rises in raw material and energy prices.
Speculation that the Goodyear Tire & Rubber Co will enter the Russian tyre market with a big investment is starting to become more concrete. Reports by a Russian analyst explain that the American tyre giant has shown the “most interest” on the subject of a partial takeover of joint-stock company, Nizhnekamskshina.
While exhibiting at this year’s Geneva International Motor Show, Pirelli highlighted 2005 as “the year of innovation.” In the wake of strong business results (the company recently reported a 42 per cent increase in operating profit), Pirelli Tyres reports that it has begun 2005 with a strategy of expansion in some of the faster growing emerging markets plus North America, as well as extending its MIRS automated production process in the United Kingdom, Germany and the US. And that is not all. The company says that its research into tyres of the future will reach concrete conclusions in 2005. Pirelli goes on to explain that this year will see the start of a series of products that will “revolutionise the concept of the tyre, which will become a more active product that ever before, and will be able to communicate with the car and driver.”
The Rubber Manufacturers Association (RMA) has reported that 11 CEOs from tyre companies in Europe, Japan, South Korea and North America met in Geneva during the Geneva Motor Show to discuss common global policy issues faced by the industry. According to news published by Tire Review, the CEOs discussed environmental and health and safety matters, and reached a consensus on two major issues.
The companies agreed to address industry policy issues of tyre materials and tyre wear particles. As part of that, they agreed to initiate independent research on these issues by establishing two project teams that will report back to the group. Participating in the discussions were the chief executives of Bridgestone Corp., Continental AG, Cooper Tire & Rubber Co., Goodyear Tire & Rubber Co., Hankook Tire Co., Kumho Tire Co., Groupe Michelin, Pirelli & Cie SpA, Sumitomo Rubber Industries Ltd., Toyo Tire & Rubber Co., and Yokohama Rubber Co.
The meeting was attended by representatives of the European Association of the Rubber Industry – BLIC, the Japanese Automotive Tire Manufacturers Association, the Korea Tire Manufacturers Association and the Rubber Manufacturers Association.
The Turkish government is planning to privatise its national communications company, Türk Telekomünikasyon AS (Turk Telecom). Two tyre manufacturers have been linked to the prospective bidders. One of the favourites to complete the purchase is Oyak, the Turkish army pension fund, which is involved in a joint venture with Goodyear. But at the same time Telecom Italia, controlled by Pirelli, is also said to have a good chance of winning.
Pirelli energy and cable systems has announced that its Comergy subsidiary has won a 25 million euro contract to supply the SP PowerAssets, a subsidiary of Singapore Power. The contract will see the company supply and install 400kV PPL oil filled power cables, auxiliary cables and accessories in order to reinforce the county’s power transmission network within the country. Pirelli’s Eastleigh and Bishopstoke, UK plants will manufacture the 400kV power cables and accessories, whilst Pirelli plants in Turkey and Indonesia will supply the auxiliary cables.
”We are delighted to have secured a second 400kV contract with SP PowerAssets in the extremely competitive Asian marketplace for power cables,” Valerio Battista, managing director of Pirelli Energy Cables and Systems commented. “The award of this second contract is important recognition of our capability of supplying competitively priced solutions for high voltage networks. It also demonstrates the client’s trust in our ability to deliver such projects on time and within budget.”
Maserati is to participate in the entire 2005 American Le Mans Series race calendar, following discussions between IMSA and Maserati Corse. After 48 years absence from Sebring the team will make its debut on 19 March with a factory racing car and has teamed up with Pirelli.
Pirelli has boosted its 2004 operating result to 380 million euros, a 42 per cent increase compared with the 268 million achieved in 2003. Last year’s figures show consolidated revenue of 7,130 million euros up 6.9 per cent on 2003’s results. The manufacturer’s net financial position settled at -1,475 million compared with -1,745 in 2003.
Pirelli have appointed Elite Garages as their recommended Motorsport Tyre specialist for the Pirelli PZero Corsa road/track tyre.
The Pirelli Corsa is described as the ultimate extreme performance tyre. It has been designed for enthusiasts who take their road car on the race track whether for a track day or for club racing allowing them to maximise their cars’ performance, without the need to change wheels or tyres when moving from road to track.
The Pzero Corsa is the successor to the renowned PZero C tyre and has a directional and asymmetrical tread pattern. The tyre will be available in nine sizes for 17 and 18 inch rims and carries a Y speed rating. Being a street legal ECE homologated racing tyre, the Corsa offers a level of performance not seen in standard road tyres, claims Pirelli.
In a recent Tire Review interview, Guy Mannino, president and CEO of Pirelli Tire North America, spoke of the “pretty great year” his company had in 2004. He and Peter Tyson, vice president of advertising, public relations and motorsports, presented Tire Review with an exclusive look at its overall strategy for 2005.
The combination of Pirelli’s new studs and Petter Solberg’s driving has brought Michelin’s Swedish rally winning streak to an end. Before this year, the French manufacturer’s run stretched all the way back to 1997. ”Despite the difficult conditions, our P Zero J1 tyres won the rally and the overwhelming majority of the stages,” said Pirelli tyre rally manager Fiore Brivio, speaking at the finish. The race winner was quick to thank the Italian tyre firm: ”There are so many people to thank, everyone from [co-driver] Phil Mills, to the guys who work on my car, to Pirelli who have built such an incredible tyre, and the supporters out on the stages who cheered us along. Thanks so much to all of you!”
The shareholders of Olimpia SpA have agreed to allow the purchase of a further 700 million Telecom Italia shares. As chief partner in the company (holding 50.4 per cent) Pirelli could buy up to 300 million share, while the other parties (Edizione, Hopa SpA, Banca Intesa SpA and UniCredito Italiano SpA) will be able to buy 100 million each. Olimpia investors already hold 17 per cent of Telecom Italia’s shares. 700 million shares equates to roughly six per cent of Telecom Italia.
Pirelli’s Brazilian subsidiary of its Telecom systems business has signed a joint venture agreement with Japan’s Furukawa Industrial, to produce fibre optic cables in Brazil. The new company, to be called SPF (Sociedade Produtora de Fibras Ópticas S.A) is split 51:49 with Pirelli responsible for the majority. The decision to merge was taken in order to “catch all the opportunities that could derive from the recovery of the Brazilian telecommunications market after last year’s slowdown,” a company statement explained.
Birla Tyres is expecting its turnover to reach 6.5 billion rupees (£80 million), New Delhi’s Business Standard has reported. Speaking to a press conference at the launch of a new truck tyre (the BT 339+), Amit Choudhury, vice president (technical services) Birla Tyres, said: “With several products already launched and a few more in the pipeline, Birla Tyres is on a fast growth track. We garnered a market share of 11 per cent in truck tyres across the country, and 30 per cent of our products are exported to about 30 countries including Pakistan, Afghanistan, Vietnam and Belgium. We expect our turnover to touch 6.5 billion rupees in the current fiscal.” Referring to the newly-launched product, he said: “The new product is an extension our main brand BT 339, with higher physical dimensional features. It is specially designed for multi-axle vehicles.”
At present the company’s truck tyre factory in Balasore, Orissa, produces 87,500 truck tyres each month. “The production capacity will go up to 93,000 tyres per month by June 2005,” Mr Amit explained. The Balasore plant was formed as a technical collaboration with Pirelli Ltd. The company owns 2,000 retail outlets, 52 stock points and 80 carrying-forward agents across the country, he added.
The Austrian Automotive Club, ÖAMTC, has tested five winter, two all-season and one conventional off road tyre for winter performance. All products were size 215/65 R16. According to the automobile club, snow braking performance really “separated the wheat from the chaff.” At a speed of 40 km/h the all-season tyres had a substantially longer braking distance than winter tyres.
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