More Company Invest in Mexico Pirelli To Invest 250 Million Dollars in Mexico

Pirelli to invest 250 million dollars in Mexico
Business - Friday, November 5, 2010 (04:19 hrs)




Produce three million tires in 2013
By José Antonio Durán
The online Financial

Mexico, November 5 .- The first stage of what will be the Pirelli tire factory in Silao, Guanajuato, require an investment of $ 250 million due 2015. Its aim is to produce initially three million tires for cars and trucks in 2013, and 2015 to reach five million tires.

Next year we will invest $ 210 million and in 2015 40 million more.
Marco Tronchetti Provera, Pirelli's worldwide president, said the investments will generate 700 direct jobs and total production, 25 percent will go to the original equipment market of light vehicles, factories, "and the rest to the replacement market.

Currently operating in eight Mexican market tire manufacturing plants, which generate seven thousand 400 direct jobs and produce at the end of this year 18 million tires, exceeding the 16 million the previous year, said Martha meanwhile Francisco, CEO National Chamber of the rubber industry, consulted separately.
Tronchetti said they chose to Mexico to invest and settle in North America due to its substantial base of light vehicle production for the domestic market and export. The company also is investing in Brazil and Argentina.

The Mexican market represents 2 percent of the total turnover of the company, involved in this country for ten years, with imports. The Latin American market is attractive for him the adverse economic environment for sales of new cars and the need for unit owners used to buy replacement tires. The company will also expand plants in China and Romania.

Industry

For his part, said Martha Bridgestone-Firestone has two plants in the country, Cuernavaca and Monterrey, Continental Tire has a "San Luis Potosi, Queretaro Michelin one-, Tornel, now known as JK, three-two Federal District and one in Tultitlan, State of Mexico, and West Corporation in partnership with Cooper Tire in Jalisco.

The production of these companies goes to 70 percent replacement market, and the rest of the original equipment market. The factories are in the process of upgrading most of its machinery, as they face competition from more than one hundred brands, mostly imported. Martha Michelin reported that more than two years ago tried to install a tire factory in Silao, Guanajuato, with an investment of $ 740 million, but halted its strategy.

The National Association of Tire Dealers and plant renewable (Andellac) reported that the Mexican market consumes more than 25 million new tires a year. In the first half of this year the market grew 7 percent, the equivalent to 100 thousand wheels "in relation to the same period last year. Sales were driven tires for the replacement market. (With information from El Financiero