Pirelli’s board is expected to approve an accord on Monday to end Sinochem’s control of the tyre maker, Reuters report stating: “Chinese and Italian shareholders in Pirelli have been at odds over the group’s governance” with the upshot being that Sinochem was considered to have hindered Pirelli’s expansion in the United States.
While publishing the details of its final decision relating to import tariffs on Chinese-produced truck tyres, the European Commission (EC) also revealed some fascinating details relating to how the market has changed in light of previous investigations. The official documents also give insight into the degree to which some firms in the supply chain of Chinese tyremakers are connected to state ownership and how the EC defines brand segmentation. And finally, the reveal how the EC tiers the different brand segments.
With the opening of its new headquarters, KraussMaffei has completed the last and largest of four relocation projects. Since 2018, the company – whose production portfolio includes tyre production systems and extruders – has invested approximately 200 million euros in four new plants in Germany and China.
On 16 February, Marco Polo International Italy S.r.l. (Marco Polo) stated that “Sinochem does not have any plan to sell its stake in Pirelli”. Marco Polo is Pirelli’s largest shareholder, holding a 37.01 per cent stake in the tyre maker. The ownership of Marco Polo belongs to China National Tyre & Rubber Co., Ltd (CNRC) under Sinochem Holdings.
On 4 August 2022, Aeolus announced it was ready to sign a supplementary agreement with China National Tyre & Rubber Co., Ltd (CNRC). Through that agreement, CNRC has entrusted Aeolus with a 38 per cent stake in Prometeon Tyre Group S.r.l. (PTG).
Giorgio Luca Bruno will succeed Marco Tronchetti Provera as chief executive officer of Pirelli. In a statement published on Monday, Pirelli investor Camfin S.p.A announced that Bruno will take responsibility for the operational implementation of the group’s strategies, freeing Tronchetti Provera to guide group strategy and oversee the implementation of the Pirelli business plan as executive vice-chairman, a role he is confirmed to hold until spring 2026. Camfin views the transition as one that ensures the “continuation of the managerial culture of Pirelli.”
On 28 April, Yang Xingqiang resigned from his role of director at Pirelli & C. SpA. The tyre maker says the reason for his resignation, which takes effect with the next Board of Directors meeting on 10 May, is “a recent and unexpected concentration of new personal commitments.”
The restructuring of Sinochem Group Co., Ltd. and China National Chemical Corporation Ltd. (ChemChina) has resulted in the establishment of a new entity, Sinochem Holdings Corporation Ltd. (Sinochem Holdings). As of 8 May 2021, both Sinochem Group and ChemChina became wholly-owned subsidiaries of the new state-owned enterprise, which is said to be the world’s largest chemical conglomerate.
On 31 March, Pirelli & C. S.p.A. received a notification letter from China National Chemical Corporation Ltd. (ChemChina) stating that ChemChina had received a notice regarding its restructuring and that of Sinochem Group Co., Ltd., (Sinochem Group) from the State-owned Assets Supervision and Administration Commission (SASAC), a commission of the State Council of the People’s Republic of China.
Aeolus Tyre Co Ltd and its controlling shareholder, China National Tire & Rubber Co. Ltd (CNRC, which is itself owned by Chinese petrochemical giant ChemChina) executed a “share entrustment agreement” on 30 November 2020. According to the agreement, CNRC will “entrust” its 52 per cent shareholding in Prometeon Tyre Group Srl to Aeolus for three years. But the three-year term will be automatically renewed upon expiry.
Pirelli’s largest shareholders have amended their ownership agreement and – at the same time – certain parties have ended their co-investment stance in relation to each other.
On 23 January 2020, Pirelli & C. S.p.A. received a notification letter from its largest shareholder, China National Chemical Corporation Ltd. (ChemChina), informing the firm that it is undergoing “strategic restructuring”. The restructuring notice covered both ChemChina and Sinochem Group Co., Ltd.
Market rumours that Pirelli is considering a €9 billion (£7.7 billion) merger with Finland’s Nokian Tyres have been quashed by company spokespeople. Reports that such a deal was on the horizon emerged in mid-January and were then fuelled by re-reporting in the British and Italian press. However, these stories are “without foundation”, according to two Milan-based Pirelli spokespeople that Tyres & Accessories interacted with. Nokian has yet to comment.
A three-year extension to the Shareholders’ Agreement covering the governance of Pirelli & C. S.p.A was agreed upon yesterday. This extension will take effect from the publication date of the notice convening the Pirelli shareholders’ meeting for approving the company’s 2019 financial statements.
An addition to the executive silverware cabinet: During last week’s Fortune China CEO Summit, Sinochem ChemChina and Pirelli chairman Ning Gaoning was the recipient of a Fortune CEO Lifetime Achievement Award.
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Source: T&A research