GUANAJUATO, MEXICO - Pirelli of Milan, Italy has announced its plans to construct its first tire production plant in Mexico.

The new factory, -located in the city of Silao (about 400 kilometers from Mexico City) - will produce high-performance and ultra high-performance tires for cars and light trucks utilizing Pirelli’s state-of-the-art manufacturing technology.

Pirelli will initially invest approximately $210 million in the plant, which will generate 700 direct and 300 indirect jobs in the local Silao area. The facility will cover an area of 120,000 square meters and will be operational in 2012.

Targeted daily production capacity is 10,500 tires with an annual capacity of 3.5 million units in 2014 increasing to approximately 5 million units by 2015.

The announcement was made in the presence of the Governor of the State of Guanajuato, Mr. Juan Manuel Oliva Ramírez, Italian ambassador to Mexico, Roberto Spinelli, the Mayor of Silao, Roberto Tovar Torres, Ing.

Luis Anthony Olivé Hawley Head of the Office for Investments and International Business

Promotion – ProMéxico, and Pirelli CEO for Latin America, Guillermo Kelly, as well as Pirelli Tire Senior-VP Operations, Giovanni Pomati, Pirelli Mexico General Manager, Mauricio Canineo and the Mexican Industrial Project Director, Giuliano Menassi.

The new greenfield project responds to continued and growing demand from the NAFTA region and Latin America. "We are very proud to become members of the Silao community, in Guanajuato,” said Guillermo Kelly, CEO of Pirelli Latin America. “This new facility is important because it complements our production in Latin America. The new factory location is also crucial as it will allow us to better serve both our Mexican customers and the NAFTA region. This is a significant investment for our customers as we will feature the latest technology developed by Pirelli to be able to supply the needs of the continually evolving market.”

"With great pride we warmly welcome to Guanajuato the Italian company Pirelli, a world leader in high-performance tire manufacturing,” said Juan Manuel Oliva Ramírez, Governor of the Mexican State of Guanajuato. “Because of its high technology and high profile of the jobs created, this new plant in Silao is an example of the type of projects we are actively seeking and will continue to attract in the future given the significant advantages offered by the State of Guanajuato as an foreign investment destination.”

The Mexico plant will be Pirelli’s 8th tire manufacturing facility in Latin America –five in Brazil, one in Argentina, one in Venezuela. This addition will also join Pirelli’s Rome, Georgia factory as the 2nd manufacturing site in the NAFTA region. “This is a strong message to our customers and consumers alike,” said

Mauro Pessi, Chairman and CEO of Pirelli Tire North America. “We are a brand on the move and this is the type of support we need to continue reaching our goals and adding to our impressive results and relationships.”

The new factory, Pirelli’s 20th worldwide, will be located at the “Puerto Interior” industrial park in the city of Silao, Guanajuato State.

Pirelli Tire North America designs, develops, manufactures and markets tires for passenger vehicles in both the original equipment and replacement markets as well as markets and distributes tires for motorcycles and motorsports.

Located in Rome, Georgia, Pirelli’s Modular Integrated Robotized System (MIRS) employs state-of-the-art technology to manufacture tires for both export and domestic markets.