Pirelli Formulation of 2011-2013 Development Plan

According to foreign reports, Pirelli , an Italian automotive tire supplier, announced that the company has made a 2011-2013 development plan .

The plan clearly stated that by 2013, Pirelli's annual average operating income growth rate will reach 8%, and EBIT margin will increase by 10.5% to 11.5%. Pirelli also stated that by 2015, two-thirds of the company's profits will come from fast-growing companies and Latin America, and the ratio of net debt to EBITDA can reach 0.6.

Pirelli will invest 1.9 billion euros (about 2.67 billion U.S. dollars) for the company's transition and development between 2011 and 2015, and the company will invest 1.5 billion euros in 2006-2010. Of these, 99% of the investment will be used in the production of tires, especially premium tires .

In order to meet the market demand, Pirelli has put into production at a new plant in Mexico to supply the North American Free Trade Zone. In addition, the Pirelli's Settimo Torinese plant in Turin, Italy, is expected to be fully operational in 2011, and the plant will become the group’s most advanced factory.

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