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Pirelli, Russian company form JV

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Pirelli & C. SpA has signed a 50/50 joint venture with a Russian company to begin production of tires and steel cord in Russia.

Pirelli and Russian Technologies, a state-owned company, will build a plant in the Russian region of Samara during the second half of 2010.

The factory will be built in two phases. "In the first phase, a factory for radial tires for industrial vehicles will be built," say Pirelli officials. Second phase production will include steel cord.

The joint venture also includes the acquisition of another plant in Russia. Within five years, both factories will have a combined output of four million units, according to Pirelli. "Total resources to be committed (to) the joint venture... will amount to about 300 million euros."

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