Russian Techonologies State Corporation and Pirelli Company sign agreement on Implementation of Memorandum on Terms of Joint Venture
Today’s agreement broadens collaboration between the two companies, which already includes building an industrial hub in Togliatti, with approximately 1500 employeesRome, 3 December 2009 - Pirelli and Russian Techonologies signed an Agreement on Implementation of Memorandum on Terms of Joint Venture to extend the collaboration begun in the context of the joint venture now being finalized, for production of tyres and steelcord in Russia. In addition to the plan already announced by the Parties to build a new industrial plant in the Russian region of Samara in the second half of 2010, the Agreement signed today foresees that the 50/50 jv being set up acquires an already existing factory, which is currently being identified among some potentially interesting Russian enterprises. It is foreseen that the acquisition will take place in 2010. The agreement was signed today in Rome in the presence of Russian President Dmitry Medvedev and Italian Prime Minister Silvio Berlusconi, by the Director General of Russian Technologies Sergey Chemezov and the Chairman of the Pirelli Group Marco Tronchetti Provera. The new industrial hub will be established on the territory of Togliatti industrial technology park (Samara region). The hub establishment will begin as soon as the Russian authorities make the decision on the area for production of automotive components, which is expected in the second half of 2010. The new factory will be built in two phases. In the first phase a factory for radial tyres for industrial vehicles will be built. The second phase foresees a factory to manufacture steelcord. At full capacity, the industrial hub will employ about 1500 workers. In the five-year period, the new factories together with the expected acquisition will guarantee manufacturing capacity of more than 4 million pieces, as foreseen by the initial plans. Total resources to be committed by the joint venture, in line with what has already been announced, will amount to about 300 million euros. PIRELLI GROUP Pirelli & C. SpA is the parent company, listed on the Italian Stock Exchange, of a multinational Group active in more than 160 countries with industrial experience dating back more than 135 years. Pirelli Tyre is the fifth-largest tyre manufacturer in the world in revenue terms, and is leader in the high-performance segments of the market. The company has 23 factories located around the world. Pirelli also operates in real estate with Pirelli RE, with assets mainly in Italy and Germany. Thanks to its focus on technology and research, in recent years the Group has started initiatives in industries with a high level of innovation, such as in sustainable mobility and renewable energy, with Pirelli Eco Technology and Pirelli Ambiente. The Group also includes Pirelli Broadband Solutions for broadband access. RUSSIAN TECHNOLOGIES Russian Technologies State Corporation is a state-owned company set up by the Government of the Russian Federation in accordance with Federal Law dated 23 November 2007. The mission of Russian Technologies is to assist Russian design and manufacturing organizations to develop, produce and export high technology industrial products in domestic and international markets, and attract corporate investments in various industrial sectors. The Samara Region is located in a southeast part of the European territory of Russia, in the middle course of the Volga. It is one of the most developed industrial areas in the country and among the leading regions of the Volga Federal District. The region’s industrial complex is presented by 476 large- and medium-sized enterprises and more than 3,500 small ones. It has favorable conditions for innovative development – a significant research and production potential, a mature infrastructure for innovative activities, and a high vocational and educational level of labor. The Samara Region’s basic specialization is manufacturing activities particularly in the energy sector. The region accounts for 70% of all cars manufactured in Russia, 66% of linoleum, more than one fifth of synthetic rubbers. Bearings, petroleum products, plastics and synthetic resins are also produced in the region. The aerospace industry is also highly developed. Togliatti Industrial and Technology Park is located in a northwest part of Togliatti, on the city boundary, in close proximity to the basic industrial site of Avtovaz car maker. The plot has ideal transport accessibility by road and rail. The park plan provides for opportunities for further development and territory expansion in the southern and western directions.