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Wednesday, March 13, 20132 }% x E" s) t/ v( d6 k1 U
0 c* X/ U. n" c* B' N2 C) h8 Z6 s# C* c Yangzhou, China - Pirelli & C SpA, the Italian tire giant, is planning a $200 million investment to make China its largest global manufacturing center by 2014. Gregorio Borgo, CEO of Pirelli Asia Pacific, said that the expansion is necessary to keep pace with the huge potential market for its tires coming from China's surging demand for luxury and sport-utility vehicles. "By 2014, our manufacturing base in Yanzhou, Shandong Province, the only one in Asia-Pacific, will become the biggest in the world for Pirelli," he said. "From 2012 to 2014, we are investing around $200 million in China, the world's largest vehicle market." Pirelli reported a turnover of EUR 353 million ($468.4 million) in Asia Pacific in 2011, and it is expecting a 23 percent year-on-year growth in 2012, helped by rising demand for more expensive vehicles in China. "The Asia-Pacific market contributes 7 percent of our global turnover, and we are targeting to increase that," added Borgo. The world's fifth-largest tire maker established its Yanzhou plant in 2005, with a first production line manufacturing truck tires. In 2007, it added a passenger tire production line with a 5 million annual capacity, with its tires exported around the world. |
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