The Group’s Second Factory in China Inaugurated in Shandong ProvinceWill Initially Produce 3 Million Tires per Year and Employ 1,000 Workers ProductionWill be Destined for China and Asia-Pacific Markets

Yanzhou, China ? Pirelli has begun manufacturing high-performance car tires in China at the Group’s second factory in the Shandong Province. The new industrial facility, which is located in the same area as the factory for truck tires which opened in 2005, was inaugurated in the presence of Riccardo Sessa, Italian Ambassador to the People’s Republic of China, Marco Tronchetti Provera, Chairman of Pirelli, Francesco Gori, CEO and General Manager of Pirelli Tyre, Niu Yshun, Chairman of Yinhe Group, and Chinese authorities.

The factory occupies a covered surface area of 70 thousand square meters and has a manufacturing capacity of about 3 million pieces per year, with areas sufficient to contain manufacturing expansion up to 10 million pieces per year. Employees, nearly all of local origin, number 1,000. The investment made by Pirelli to build the factory amounted to nearly 100 million dollars. Production will be destined for China and the main markets in the Asia-Pacific area.

Realization of the car tire factory starts the second phase of the Group’s expansion plan in China, one of the world markets of reference for tire manufacturers. In the next four years, growth in the local tire market will be driven by a significant increase in demand for new cars, resulting from the combination of several factors: GDP growth (estimated at about 10% per year between 2008 and 2010), the improved quality of life for large segments of the population, better road infrastructure, and the trend towards lower prices due to increased competition and technology innovation.

Following the investment in the truck tire factory, which allowed Pirelli to establish its presence in the Industrial business – confirmed by the leadership gained from supplying original equipment to CNHTC (the No. 1 domestic manufacturer of industrial vehicles) – the objective now is to conquer the growing Chinese automobile market, in particular in the mid-high range segments, where double-digit CAGR (cumulative annual growth rate) is expected over the next four years.

Pirelli, whose brand is highly regarded throughout China, intends to play a leading role in this growth process and aims to conquer a double digit market share in the high end of the Chinese market.

The growth strategy of Pirelli in the local market also includes strengthening the distribution network, which will grow to more than 1,000 points of sale (of which about 2/3 monobrand), by the end of 2008.

The new Yanzhou plant, one of the most modern in the world for tire manufacturing, uses the best non-robotized technologies and has been conceived for production of mid-high performance tires. The entire industrial complex, with two large, technologically advanced plants, will therefore become an important manufacturing, logistic and commercial hub for all of the Far East. For its realization, in the last three years, Pirelli invested a total of over 200 million dollars.

Much attention has been dedicated to corporate social responsibility, with a campaign to sensitize employees on CSR themes, and to intercultural integration initiatives and work-life balance initiatives such as recreational events and trips. Pirelli has also launched a free vaccination campaign for all workers.

Pirelli operates in China through a subsidiary company, the result of the joint-venture agreement signed in 2005 with the Yinhe Group. The stake in the venture has recently been increased from 60% to 75%in a transaction valued at about 11 million euros. The strengthening of the Yanzhou hub adds to Pirelli’s strong international presence of 25 factories in 12 countries around the world.

To celebrate and commemorate its expansion in China and throughout Asia, the Pirelli Group has decided to present in Shanghai, “Pearls of the Orient”, the 2008 edition of the celebrated Pirelli Calendar. The latest edition of “The Cal”, shot by photographer Patrick Demarchelier, will be unveiled at a special event there today.

Pirelli Tire North America specializes in manufacturing and marketing high-performance tires for passenger vehicles, motorcycles, ATV’s and motorsports. An industry leader in technology and quality, Pirelli operates its highly advanced Modular Integrated Robotized System (MIRS) in Rome, Georgia, to better serve the American OEM and Replacement markets.

 

As America’s leading distributor of high performance products, the Tire Rack needs to know how performance products measure up. Recently, their focus was an independent tire evaluation of the current three top performers in their “max performance” tire category and the new arrival, the next generation Pirelli P Zero. The Tire Rack’s independent test results recognize Pirelli’s new P Zero as the top all-around performer.

Tire Rack’s test track facility and team of trained test drivers, their sales team, are able to provide feedback from the “track to the street” for the automotive consumer. The “on track” evaluations in this instance consisted of 90-degree street corners, lane changes and simulated expressway ramps at high speed. These exercises were run in both dry and wet conditions which allowed the team to experience traction, responsiveness, handling and drivability normally only encountered during abrupt emergency avoidance maneuvers or competition events. “On the road” evaluations consisted of a 5.6 mile loop of expressway, state highway and county roads that provide a variety of road conditions which included city and highway speeds, smooth and coarse concrete as well as new and patched asphalt. This route allows the Tire Rack team to experience noise comfort, ride quality and everyday handling. The evaluations utilized 2006 BMW325i E90 sedans in a series of exercises on the road and on their test track with new full tread depth 225/40ZR18 tires mounted on 18″x8″ wheels.

P Zero represents the most technologically advanced product to come out of Pirelli’s research and offers the most demanding motorists unprecedented performance in all areas: cornering, steering, braking, comfort, safety and overall handling in the wet as well as dry. The latest addition to the P Zero collection, benefits from numerous innovative features in tread design, compounding, and structure developed and patented by Pirelli. “A record number of homologations with premium auto manufacturers like Ferrari, Lamborghini, Maserati, Audi, Aston Martin, Mercedes-Benz, and Porsche are indicative that P Zero delivers optimum performance in wet or dry conditions while combining max sport handling with comfort”, explains Hugh Pace, Chairman and CEO of Pirelli Tire North America. “This tire has been designed and developed to control the extreme performance of the super cars of today and to offer higher levels of driving satisfaction and safety to the most demanding drivers.

In head to head comparison on the track the new Pirelli P Zero was the leader in all categories in both wet and dry conditions. The P Zero’s ability to provide the best handling in the slalom, skid pad and overall lap times is true testament to the innovative features of this tire. In addition to class leading road manners and the shortest in stopping distances in both wet and dry the new Pirelli P Zero is truly the leader in the “max performance” category. For complete results of this test visit tirerack.com or simply click on this link http://www.tirerack.com/tires/tests/testDisplay.jsp?ttid=98
Pirelli Tire North America specializes in manufacturing and marketing high-performance tires for passenger vehicles, motorcycles, ATV’s and motorsports. An industry leader in technology and quality, Pirelli operates its highly advanced Modular Integrated Robotized System (MIRS) in Rome, Georgia, to better serve the American OEM and Replacement markets. For more
information please visit: www.us.pirelli.com. 

44 cars present for inaugural Pirelli pre-season test sessions.

Daytona Beach, Florida- Pirelli’s inaugural pre-season test session with the Grand-Am Rolex Sports Car Series presented by Crown Royal Cask No. 16 took place in sunny weather and track temperatures of 90°F. The two day session was marked by highly favorable comments from the drivers and record lap times from the cars. Pirelli debuted its new motorsport support team and fleet which brought 2400 tires to support the 44 teams that attended.

Starting with the 2008 Rolex 24 at Daytona, Pirelli will fit all Daytona Prototype and GT competitors with tires specifically designed to suit both standard road course circuits and the banking of the Daytona and Miami tracks. Pirelli proudly returns to the North American motorsport scene as the official tire supplier to the largest professional sports cars series in the United States.

Sun Trust Racing team owner and driver Wayne Taylor said: “I’m thrilled to see Pirelli with us in the Grand-Am series. The new P Zero Racing tire offers a tremendous level of grip, consistency and steering feel, which makes each driving stint really exhilarating. As a former Pirelli driver, it’s nice to be back on Italian rubber.”

Former FIA-GT champion Gabriele Gardel, in Daytona for his first test with the #77 Doran Racing Ford noted that: “the Grand-Am atmosphere is absolutely amazing. Driving a Daytona Prototype is exciting and with the Pirelli tires I felt secure right from the beginning in a car I had never driven before. I’m looking forward to driving in Daytona on Pirelli tires in January”.

Pirelli Tire North America specializes in manufacturing and marketing high- performance tires for passenger vehicles, motorcycles, ATV’s and motorsport. An industry leader in technology and quality, Pirelli operates its highly advanced Modular Integrated Robotized System (MIRS) in Rome, Georgia, to better serve the American OEM and Replacement markets. For more information please visit: www.us.pirelli.com.