Strategy

In line with the strategic drivers followed in the last few years, the Group wants to keep on strengthening its leadership position for what concerns the consumer business premium sectors and the industrial business spreading and emerging areas.

To support this strategy, Pirelli Tyre is investing in new and more competitive productive capabilities in both activity sectors . The factory at Gravataì (Brazil) represents the Group's main development and production centre of conventional motorcycles tyres, and has recently seen the addition of specialising in the production of radial tyres for trucks and buses.

Also to be highlighted are the productive units of Turkey, China and Egypt. A particular focus is needed on the production in China where, while producing truck tyres, Pirelli Tyre has began the construction of a new plant fully dedicated to car tyre production - planned to be opened in the second half of 2007. In addition to the China a new high performance car tyre plant is to be opened in Romania where the Group already has a Steelcord production plant.

The focussing view on very high potential markets is strictly linked to the choice of producing- with high performing automation systems- high technological content tyres in Europe and North America: markets characterized by a growing demand in the sectors with the greater value added.