Pirelli to Start Russian Tyre Plant Negotiations
Pirelli & C. SpA and has signed a letter of intent to begin negotiations for the construction of a car, light truck and heavy truck tyre plant in Russia. The letter was sent to the Russian State Corporation for Assistance to Development, Production and Export of Advanced Technology Industrial Product (also known as Russian Technologies). The new facility will also produce steel cord tyre reinforcements and automotive filters.
Russian Technologies and Pirelli have agreed on an exclusivity period for the negotiation of the final agreements, until 30 September 2008. Upon its establishment, the two partners would jointly control the Joint Venture, while Pirelli would be responsible for the development of the business strategy and running operations of the Joint Venture, which would be carried out under the Pirelli brand name.
Sergey V. Chemezov, Director General of Russian Technologies, said: “The Joint Venture will be based on mutual interest to successfully fulfilling the project ,which has significant industrial perspectives as it will concentrate the production and sales in Russia and CIS states. We are confident that cooperating with foreign companies independently will make decision-making process more flexible. Russian Technologies is strategically aimed at promoting high-technology production on internal and external markets and is planning to incorporate several hundreds of export-oriented companies, primarily [in] machine-building sector.”
Russian Technologies is a legal body established by the Russian Federation Government in the form of state corporation business entity in accordance with Federal Law passed on 23 November 2007.