Italian tyre maker Pirelli has opened its first plant in Mexico as part of its plans $300m investment plan in the region by 2015 and an additional $100m by 2017.
The new 135,000m2 plant is Pirelli's 22nd tyre plant which will produce tires for cars, and SUVs for the local and all Nafta area markets.
Pirelli said that the capacity of the new facility will reach 400,000 units by end of 2012 and will increase to 3.5 million during the initial development phase ending in 2015.
After the plant becomes fully operational in 2017, it can produce 5.5 million tyre units.
The new plant will also allow the company to increase its capacity to meet the Nafta area demand through local production which accounted for 6% in 2011 and is expected to increase to 11% in 2012 as well as to 53% by 2015.
The tyre maker is expecting its revenue to increase 9% in Nafta area accounting to nearly GBP710m by 2014.
According to Pirelli, the new plant will also reduce logistical costs, offer enhanced customer service, reduce imports from Brazil and free its production capacity which currently serves the Nafta area, as well as allow Brazilian production to focus on the Latam region.
