Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
On 22 July 2005 Pirelli and Continental launched a €40 million joint investment project to build a metallic inserts (reinforcement cord for tyres) plant used in the tyre manufacturing. The Cord Romania factory is a joint venture owned by Pirelli (80%) and Continental (20%).
The Pirelli-Continental plant in Slatina (Sud-Vest region, Olt county) is located on a 100,000 square metres site and has 135 employees. It exports 80% of its output, mainly to the emerging eastern European market, where the demand for metallic inserts is twice higher than the offer. By 2010, the plant will reach its maximum production capacity, which is of 30,000 tons a year and will create up to 350 new jobs. Currently, it employs 135 people and produces 6,500 tons a year.
Pirelli sees the inserts plant as a primary step for its development strategy on the Romanian market. The next step will be the opening of a high quality tyre factory by 2006, also based in Slatina, which will supply tyres for all the countries in eastern Europe.
The second owner Continental already has four plants in Romania in which it invested about €120 million. The Cord Romania factory will supply metallic inserts for its tyre factories.
Eurofound (2005), Cord Romania, Business expansion in Romania, factsheet number 62028, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/62028.