Pirelli – Russian Technologies JV Agreement Signed in Moscow
On November 6 Pirelli & C. SpA and Russian Technologies State Corporation signed an agreement formalising a joint venture between the two companies. Although details of the JV are still to be finalised, Pirelli reports that the production of tyres in Russia will begin before the end of 2010.
The agreement was signed in Moscow by Pirelli & C. SpA chairman Marco Tronchetti Provera, and by Russian Technologies director general Sergey Chemezov, in the presence of Italian Prime Minister Silvio Berlusconi and Russian Federation President Dmitri Medvedev, during the Italy-Russia summit. Several months ago Pirelli and Russian Technologies began negotiations for the creation of a jointly controlled venture that will operate in the territories of the Russian Federation and the Commonwealth of Independent States.
The agreements signed between the two companies to date include construction of a new facility for the production of car and truck tyres in the Russian region of Samara, whose Government is also supporting the project. The plant, to be built with a joint investment of about 300 million euros, will have initial annual manufacturing capacity of about 4.2 million units. Construction work on the factory is expected to commence in Summer 2009.