Joint-venture for Tyre production in China completed

Pirelli's initial investment, as majority shareholder in the new company, amounts to approximately 70 million dollars
Milan, 29 July 2005 - The joint-venture agreement between Pirelli and Roadone Tyre Co. Ltd, announced on 16 June 2005, was completed today having obtained the approval of the competent Authorities.

The joint-venture, majority owned by Pirelli with approximately 60% of the share capital, has as its goal the production of radial truck tyres in the Shandong Province. The new company will serve the Chinese market and others in South East Asia. Pirelli expects to make an initial investment in the joint-venture of approximately 70 million dollars (approx. 60 million euros).

Pirelli thus confirms its strategy of expansion in the Chinese market, where it plans to invest approximately 150 million euros over the next three years, as announced in November 2004. The Chinese market is the world's fastest growing for road transportation with a total production in 2004 of more than 100 million sets of radial tyres, representing approximately 50% of the overall tyre output in China, with a 33% increase over the previous year.

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