BEIJING MAY 8, 2018 – Pirelli aims to further reinforce its position in China, where it is already the leader in the Prestige and Premium segments, by capturing the growth of local demand for high end products.
China National Chemical Corporation (ChemChina) will give all the support needed, drawing on its valuable experience and established channels in China, to accelerate Pirelli’s growth by encouraging the spread of its new technologies, products and services.
The expansion in the market of innovative technologies - which include products, production facilities and 4.0 manufacturing processes – will also contribute to the 2025 Made in China strategy.
Over the past three years, Pirelli has changed and become the only ‘Pure Consumer Tyre Company’(Car, moto and Bicycle) globally, with a strategy focused on High Value segments (New Premium, Prestige, Specialties, Super Specialties, Premium Moto and Velo);
China is the first market in the world for the sale of Prestige and Premium cars and among the most innovative with regard to new technologies and is of strategic importance for Pirelli’s growth in the High Value segment.
The Company has been producing in the country since 2005 and currently has two facilities in Yanzhou and Jiaozuo. In China, Pirelli counts solid partnerships with the main global Prestige and Premium car makers, which in recent years has extended to local brands which are among the most innovative and present in the electric segment.
Mr. Ren Jianxin, the Chairman of Pirelli and ChemChina, said: “ChemChina has been committed to a global strategy. We have expanded in the mid-to-high end in the industry chain, value chain, service chain, and supply chain. We have stepped up consolidating domestic and overseas assets and businesses, such as Pirelli, by leveraging the full convergence between overseas and Chinese businesses in consolidated business models and effective incentive systems, ChemChina is also undergoing a revolutionary transformation. It is also an important approach for ChemChina to deepen supply-side structural reform and to build a modernized economic system, and constantly improve the global layout and the quality of development”.
“China is a great opportunity for ongoing growth for Pirelli. Its innovative technologies have always made Pirelli a unique entity in its industry and, together with ChemChina’s valuable contribution, will allow us to further strengthen our presence in the country”, said Mr. Marco Tronchetti Provera, Executive Vice Chairman and CEO of Pirelli.
To support this strategy, Filippo Maria Grasso, the Vice President of Institutional Relations of Pirelli, has been appointed as the CEO of CNRC (China National Tire & Rubber Corporation).
Already in 2017, Apac – with revenues that saw organic growth of 14.3% to 806.2 million euro, over two thirds of which from China – was the Pirelli region with the highest rate of growth. This was specifically driven by High Value products whose revenues increased by 18.3% last year. To further capture the Apac market’s growth Pirelli plans, among other things, to expand its commercial network in China where at the end of 2017 it already counted over 3,700 points of sale.
In the High Value segment, Pirelli is already the global leader in Prestige tyres and has established partnerships with the world’s most prestigious car manufacturers.
Over the last four years the company has devoted 7.3% of its High Value revenues to R&D, developing innovative digital-based products in anticipation of new trends in the automotive market. In fact, Pirelli first invested in Cyber technologies in 2002 and launched last year the first cyber product, Connesso. Connesso is a product for the Replacement channel and thanks to a sensor in the tyre and a smartphone App informs users of tyre wear, pressure and temperature. The next cyber product is Cyber Car. Launched this year, it is integrated into the car’s electronic equipment on board and sends information to the car which adjusts its control systems for a safer and better driving performance. Pirelli also offers other cutting edge products and services, such as the PNCS noise cancelling system, Runflat and Seal Inside systems as well as super specialties like the Color Edition.
In all 19 Pirelli facilities around the world, as well as in its Chinese plants, with staff of around 4,000 and production capacity of 12 million pieces, a transformation program is in progress based on Smart Manufacturing and Flexible factory programs focusing on three key elements: connected assets, big data and analytics and data driven culture. With regard to both products and plants, attention to sustainability has gone hand in hand with technological advancement. The two plants in China are strongly committed to the highest sustainability standards in areas such as waste management, recovery of factory waste and energy consumption, as well as the high level of training provided.