Sibur Holding Transfers Kirov Plant to Pirelli-Russian Technologies JV

The Pirelli-Russian Technologies equally-owned JV will focus on production of winter tyres, half carrying the Pirelli brand. Locally produced tyres will be sold in the Russian and CIS markets.

The Kirov plant has a current annual production capacity of 7 million passenger and LCV tyres. By transferring further assets, annual production volume is to grow to 11 million units by 2014. Total value of the acquisition amounts to €222 million, with a payment of €55 million in 2011 and €167 million in 2012.

The joint venture’s sales are expected to be around €300 million in 2012, and over €500 million in 2014. This will also be the result of investments of €200 million over the next 3 years, which will include the modernization of the plant and increasing the production capacity.

Within the context of the agreements relating to the joint venture, Pirelli has the possibility of raising its stake in the JV from 50% to 75%.