Pirelli: There will be no investments in Russia
12 august 2009
Due to the global crisis, Pirelli is abandoning its planned $100 million investment in China.
In July 2008, the company announced its intention to invest $100 million in China over two years to double production capacity by 2011. Nevertheless, despite a 40% increase in sales in China in the first half of 2009, the Italian company has decided to reconsider its plans.
"In July 2008, we were living in a different world," said Giuseppe Cattaneo, managing director of Pirelli China. "For now, we want to wait and see what happens next. Once the global market situation stabilizes, we can resume our investment projects."
Pirelli is also putting its investment project in Russia on hold until an economic recovery begins.
The company's decisions are linked to the sharp decline in demand in the American and European markets.
In July 2008, the company announced its intention to invest $100 million in China over two years to double production capacity by 2011. Nevertheless, despite a 40% increase in sales in China in the first half of 2009, the Italian company has decided to reconsider its plans.
"In July 2008, we were living in a different world," said Giuseppe Cattaneo, managing director of Pirelli China. "For now, we want to wait and see what happens next. Once the global market situation stabilizes, we can resume our investment projects."
Pirelli is also putting its investment project in Russia on hold until an economic recovery begins.
The company's decisions are linked to the sharp decline in demand in the American and European markets.