Is an Italian multinational company based in Milan, Italy, listed on the Milan Stock Exchange since 1922, with a temporary privatization period by the consortium led by the Chinese state-owned enterprise ChemChina. Nov 20, 2019 TURIN, Italy—Pirelli & C. Has claimed a world-first with the development of intelligent tires that are capable of detecting and transmitting information about road surface conditions via the 5G network, a move the tire maker said takes a step closer to full autonomy.
Pirelli was founded in Milan in 1872 and today stands as a global brand known for its cutting edge technology, high-end production excellence and passion for innovation that draws heavily on its Italian roots. Romana Moares reports.
With around 30,000 employees and a turnover of more than €5.3 billion in 2017, Pirelli is a major player in the tyre industry and the only global player focused solely on the consumer tyre market, which includes tyres for cars, motorcycles and bicycles. In March 2017, Pirelli spun off its industrial tyre business making the company 100 per cent focused on consumer tyres. Pirelli is now concentrating on high value tyre markets, delivering innovative tyres and developing Specialties and Super Specialties for its comprehensive product portfolio.
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- Pirelli has been sponsoring sport competitions since 1907 and is the exclusive tyre partner for the Grand-Am Rolex Sports Car Series for 2008–2010, FIA Formula One World Championship for 2011–present and for the FIM World Superbike Championship. Pirelli's headquarters are located in Milan's Bicocca district.
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Pirelli is dedicated to making a wide range of high quality and technologically advanced tyres best suited to meeting the needs of the final consumer. The company’s product range consists of innovative tyres for cars, motorcycles and bicycles, and includes a growing portfolio of customised products such as Pirelli Cyber Tyre and Pirelli Color Edition. These product innovations harness the latest technology and research to offer greater performance and safety for all Pirelli’s customers.
Within the tyre industry, Pirelli competes with ‘Tier 1’ manufacturers (namely Nokian, Bridgestone, Michelin, Continental and Goodyear) which are characterised by higher than average price positioning, a wide range of products and dedicated regional lines. Among these players, Pirelli distinguishes itself for its exclusive positioning in the Pure Consumer Tyre segment. Over the years Pirelli has gained a sound positioning in High Value tyres, and is today a world leader in the Prestige car tyres segment, with a share of more than 50 per cent of the global market, and also in the radial motorcycle tyres segment. Pirelli is also leader in Europe, China and Brazil for New Premium replacement car tyres and for Premium motorcycle tyres.
Pirelli supplier awards 2018
Each year, the company rewards its suppliers, recognising their undisputable contribution to Pirelli’s global success. Sustainability, innovation and quality of service were the key elements for the Pirelli Supplier Awards 2018, the annual occasion when the company awards nine suppliers from its global supply chain of over 10,000 for their ability to make the Pirelli supply chain even more sustainable and enhance qualitative excellence.
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In the 2018 edition, the most frequently seen factors include innovation, quality of service and sustainability, which had its own specific award. The winners of the Pirelli Supplier Awards 2018 include: Glanzstoff Sicrem SpA (Italy), suppliers of textile reinforcements – awarded for the criteria of ‘Quality’ and ‘Speed’, plus the prestigious Sustainability prize, which the company deserved because it produces rayon using only cellulose from plantations certified for sustainable agro-forestry management; JSR Corporation (Japan), a supplier of synthetic rubber awarded for the criteria of ‘Innovation’ and ‘Service Level’; Thai Eastern Innovation Co., Ltd (Thailand), PT. Kirana Megatara Tbk (Indonesia) and PT. Prasidha Aneka Niaga Tbk (Indonesia), all suppliers of natural rubber awarded for ‘Quality’ and ‘Service Level’; VMI Holland (Holland), a supplier of tire assemblers and machines for semi-processed components for the criteria of ‘Quality’ and ‘Global Presence’; MDM (Italy), an integrated marketing and communication agency awarded for the criteria of ‘Innovation’ and ‘Speed’; APPIAN (USA), a supplier of the Business Process Management platform and related consultancy services awarded for the criteria of ‘Innovation’ and ‘Speed’; Warehouse Service, Inc. (USA), a logistics services supplier awarded for the criteria of ‘Speed’ and ‘Innovation’.
Matteo Battaini, chief purchasing officer, commented: “Pirelli has built its business model, focused on high value, on product innovation and process digitalisation. To pursue this strategy it is not only necessary to choose suppliers that are leading companies, but also to build with each of them a partner relationship. It is essential that they share values such as innovation, quality, customer care, product and process sustainability and attention to brand value.”
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The company is set the meet the challenges of the future. With 18 factories located in 12 countries Pirelli had a production capacity of 76 million car tyres in 2017, and more than 14,600 points of sale in over 160 countries – a growing sales network that puts Pirelli ever closer to its customers.
A strong commitment to research and development with an open and collaborative approach is the basis for future development. In 2017, Pirelli’s investment in R&D was 6.5 per cent of its revenues from high value products, which absorbed 90 per cent of total R&D expenditure – one of the highest levels among the world’s major tyre producers. Pirelli has 1800 people engaged in R&D located at its Milan headquarters and 12 local technology centres and a portfolio of 6100 patents.
The Pirelli brand is known around the world as an icon of technology and excellence. Represented by the ‘capital P’ logo for more than a century, the Pirelli name stands for a premium, high-end style with an Italian heritage all underlined by its distinctive position as a supplier to luxury car manufacturers. The reputation and strength of the brand are continually reinforced by Pirelli’s involvement in motorsport projects and competitions, design and lifestyle projects and initiatives for the community, art and culture. This involvement is set to carry the heritage into the future.
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9 December, 2016The IndustriALL Trade Union Network at Pirelli held its second annual meeting on 30 November and 1 December in Turin, Italy.
Participating IndustriALL unions came from Argentina, Brazil, Italy, Turkey, UK, and Venezuela. The unions exchanged and compared working conditions at the tyre manufacturer in the different countries. The meeting comes one year after ChemChina purchased the company for 7.2 billion Euros. The meeting analysed the company and the rubber industry as a whole.
In the two main UK plants, Carlisle and Burton, IndustriALL affiliate Unite the Union represents 97 per cent of the 1,170 workforce. While the British colleagues are wary of the increased investment in Pirelli’s Romania facility, demand remains very high for the SUV tyres that the UK centre of excellence produces. Two main concerns are a lack of job security and a lack of investment in the UK factories.
Unite and Pirelli have wage negotiations scheduled for 1 February 2017. The union reports that 7 per cent of the Pirelli workers are on temporary contracts on the same conditions as permanent staff.
The Brazilian Sindicato del Caucho de Sao Paulo (FS) also reports 97 per cent union density, equalling 2,500 blue-collar workers in the Sao Paulo facilities. Pirelli has around 9,000 workers in all of Brazil. The Brazilian union reps explained the complex profit sharing provisions that they have negotiated at Pirelli in coordinated bargaining with the other union CNQ-CUT.
The crisis in the Brazilian economy is leading to job cuts in the country’s rubber industry. Production is forecast to drop and the union challenge in Pirelli Brazil will be to protect jobs. There was a 20-day strike already this year.
In Pirelli Argentina the IndustriALL affiliate SUTNA has 98 per cent union density. The union complains of out-dated machinery in the factories and a lack of investment, and also of health and safety concerns. The union reported on its successful campaign to gain permanent employment for precarious workers at Pirelli.
Three different Italian unions are present in the two main factories in Italy, which employ around 1,200 and 300 workers. Around 80 per cent of the permanent staff are members of a union. The precarious workers are very difficult to recruit in Pirelli Italy. The Italian union CGIL holds the position of coordinator of the Pirelli European Works Council, but reports frustration with management attitude in that body.
In the Venezuelan plant of Pirelli, 732 workers are unionized out of total 800. It was reported that Pirelli does not provide a pension for workers in Venezuela, and there are severe health and safety concerns, outdated machinery. Pirelli Venezuela has stopped buying raw materials so the union is preparing for a tough year 2017.
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Turkish affiliate Lastik-Is represents 100 per cent of all 8,000 blue-collar tyre workers in Turkey. Tyre workers are paid well above the average industrial worker in Turkey and there is now no subcontracted work in the industry following a recent union victory against precarious work. Lastik-Is bargains common CBA frameworks across the tyre companies.
The network adopted an action plan which included plans to: increase union density; exchange information on a regular basis; and grow the network with worker participation from USA, Russia and elsewhere.
IndustriALL Auto Industry Director Helmut Lense said:
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“The Pirelli network is progressing well and after this second meeting is in a good position to build and grow its work.”