‘Rostec’ and Pirelli concluded the agreement of automobile tyre production joint venture establishment in November, 2008. In 2011 ‘Rostec’ and Pirelli acquired Kirov and Voronezh tyre works assets from the SIBUR holding. Total transaction amount was 222 million euro. By 2014 the parties are to invest another 200 million euro into production modernisation and industrial capacity increase.
Pirelli Tyre Russia manufactures truck and passenger car winter tyres for consumer markets of Russia and CIS. The JV is expected to produce up to 11 million items and fill approximately 20% of Russian tyre market by 2014. Sales revenue is anticipated to be 500 million euro. Besides, Voronezh plant has an opportunity to manufacture the elite tyres and enter international market as it has the innovative equipment.
Italian company interest in JV setting up is, first of all, generated by car sales volume growth in Russia. According to AEB car and light commercial vehicles turnover in Russia in 2011 increased on 39% and amounted to 2.65million items. Besides, shift to the more expensive cars can be observed. Pirelli hopes that base cases of the segment cars are among the most important lines and expects JV to thrive.
‘Rostec’ attracts exterior investments and modern technologies to Russia by the cooperation with foreign partners, which favourably affect modernisation and competitive growth of the country’s economy.