Officials of the Italian tyre maker Pirelli say that investment plans for Romania remain viable despite the current economic context, so that the group will put another 250 million euros in its Romanian factories by 2011.
The reconfirmation of the investment plan for Romania comes at a time when Marco Tronchetti Provera, the chairman of the group anticipates decline in consumer spending, which prompted Pirelli to lay off 200 people in Italy already, while the output of the Slatina tyre plant was down to one third in December.
"For the time being, we confirm next year's investment, announced in October. The plant in Slatina is somewhat sheltered compared with other facilities because it is a new investment, with a higher technological level and a higher productivity. We have to continue to boost productivity, though," Enrico Malerba, chief executive of Pirelli Romania, stated.
Malerba added that Pirelli was currently experiencing a 30% decline in orders worldwide for the original equipment segment, and a 15% decline in the orders for the aftermarket segment.
The lesser decline on the aftermarket segment is because of orders from clients that replace their tyres for the winter season, which drives sales up.
"We expect lower demand next year, at least in the first half. Every survey shows the crisis worsening and peaking at the end of the first half, or even in the second half," Malerba continued. The international financial crisis that has also affected the business of the Italian manufacturer, has made Pirelli cut production at some of its factories or close some of them for the winter holidays early.
"We have sufficient stocks and we had to halt production. This is not a pleasant situation but we took different steps in each country where we own factories, adjusted to the situation. Therefore, we decided a short-term producti
