Pirelli Plan to Focus on Cost Rationalisation & Green Solutions
As part of its 2009-2011 Industrial Plan, Pirelli Tyre reports it is continuing with the cost cutting strategy it commenced last year. The goal of this plan is to save more than 300 million euros over a three-year period through the rationalisation of manufacturing structures and staff in Europe, the renegotiation of raw material purchasing agreements in order to take advantage of falling prices, and savings from lower energy and logistics costs.
Manufacturing capacity in emerging markets is to be expanded so as to take advantage of increasing demand in these regions, coupled with their lower manufacturing costs. In the commercial tyre sector 87 per cent of Pirelli’s total production is already located in low-cost countries, compared with an average of 50 per cent for the company’s four major competitors.