Pirelli resumes investments in Brazil
Valor Econômico
Pirelli announced yesterday the resumption of its investments in Brazil, with the promise of allocating US$ 200 million in to the subsidiary until 2011. In the event of celebration of the 80 years of the company in the country, which had the presence of its main executives, among them the group CEO, Marco Tronchetti Provera, and the chief-executive of the tires division, Francesco Gori, Pirelli confirmed Brazil as the country with the greater volume of its investments in the world.
Of the total investment planned for Brazil, including the investments already made last year, nearly US$ 100 million will be allocated in the area of innovation, with part of the funds being invested in what Pirelli classifies as "green technology". Without detailing the plans for the rest of the resources, Gori only informed the segments of tires for passenger vehicles and trucks will also absorb relevant portions of money.
The executive does not rule out the possibility of making of a financing of the BNDES (National Development Bank) in the investments. According to the data of the company, 25% of the US$ 100 million invested in 2008 were financed by the bank. The Unit of Feira de Santana (BA) was also a highlight in Gori's interview due to the fact it has, among the units of the company in the region, great potential to export to North America. Nearly 35% of Pirelli's production in the country is exported. Besides the plant in Bahia, in Brazil, Pirelli has plants in Santo André, Campinas and Sumaré, in São Paulo, and Gravataí (RS), concentrating 90% of the South American production.