Facilities in Turkey and Romania to cover exports to European markets
Milan, Italy – Pirelli C. & SpA announced a series of measures taken to mitigate the effects of Russia’s war against Ukraine on its operations in Russia and Europe.
As previously announced, Pirelli said it had suspended investment in its factories in Russia except for those intended for safety and “gradually limiting” activities.
In a May 10 statement, Pirelli said it had now directed Russian production to the domestic market in accordance with international sanctions that prohibit the import of Russian finished products into the EU and the export of certain raw materials to Russia from of the second half of the year. .
In response, the Italian manufacturer said it had identified alternative sources for import and export flows.
This, he said, includes the “gradual activation” of finished product supplies from Turkey and Romania to replace Russian exports to European markets.
In Russia, the company will mainly use local suppliers of raw materials to replace European suppliers.
Pirelli operates two car tire production plants in Kirov and Voronezh, Russia.
The factories have a total production of 8 million units per year, 85% of which are standard tyres, and export 50% of the products to Europe.
In 2021, Russia accounted for 3% of Pirelli’s €5.3 billion turnover and around 11% of the group’s car tire production capacity.
Pirelli operates a production plant in Slatina, Romania, where it produces 13.5 million units of passenger car tires.
In Izmit, Turkey, the company operates a plant where it manufactures 7 million units of premium tires for passenger cars and light vehicles as well as Formula 1 racing tires.