MILAN – Pirelli plans to refocus its resources on its tire business by selling majority control of its energy and telecom cables businesses.
The cable businesses represent half of Pirelli’s sales but less than a third of its operating earnings, according to the firm’s financial results to September 2004.
Pirelli will build a passenger-tire plant in Slatina, Romania, to manufacture mainly performance passenger tires to meet growing demand from eastern European markets.
Pirelli will add capacity at plants in Germany, the US and the UK. In China, Pirelli has agreed a joint venture with Aeolus Tyre Co. Ltd. to produce tires and steel cord at plants to be built in the Henan province.