Pirelli Opens First Tire Manufacturing Plant In Mexico
Italian tire company, Pirelli, recently opened its first Manufacturing Plant In Mexico and is expected to supply the car and SUV markets for both the United States and Latin America’s NAFTA trading partners. With their initial $300 million investment by 2015, Pirelli will also pump an additional $100 by 2017 into the facility. Preliminary manufacturing projections indicate the plant will produce 400,000 tires by 2012. By 2015, their production will expand to a whopping 3.5 million units. Once fully operational, projections for Pirelli’s first manufacturing plant in Mexico targets production at 5.5 million tire units by 2017.
With this output, the Italian tire company will be able to increase its capacity to meet demand for the Americas market. In 2011, Pirelli produced tires in the region at a 6% level. With its new manufacturing plant in Mexico, capacity will jump to 11% by 2012 and by 2015 it will increase to an impressive 53%. Revenues are projected to increase by 9%, or GBP710m, by 2014. Pirelli’s new plant will provide strengthened customer service levels to the region, reduce imports from Brazil while also lowering overall logistical costs to the America’s automotive market.