CHINA – Pirelli finalizes the agreement for the acquisition of a 49% stake in the JV with the Hixih Group in China
In execution of the agreements reported in August, Pirelli informs that it closed the Purchase Agreement for a 49% stake in the JV that, through Jining Shenzhou Tyre Co., owns a consumer tire production plant in China.
As announced, Pirelli’s investment for the 49% stake in the Joint Venture amounts to almost 65 million euros. In addition, from 1 January 2021 to 31 December 2025, Pirelli will be entitled to increase its stake to up to 70%. The operation does not change the targets set in the Company’s 2017-2020 Business Plan.
In consideration of the evolution of the Chinese market, of the results expected from the electric car sector and the growing certifications obtained in the OE market in China, Japan and Korea, the new plant, which is due to be managed by Pirelli executives, will assure the necessary production flexibility in the High Value segment.