Italy's Pirelli Tyre is eying a 10 percent share of China's premium car tire market as it opened a US$97 million plant yesterday in Shandong Province.

"We aim to have 10 percent, but this could take at least three to four years to happen," Chief Executive Officer Francesco Gori said in an interview in Yanzhou, launching the firm's new factory.

The plant is initially capable of producing three million tires a year, with the potential to expand to 10 million later.

Pirelli launched a truck tire plant at the same site in 2005. The tire plants are operated under a 75-25 joint venture between Pirelli and Yinhe Group, a local enterprise. Gori said Pirelli has invested more than US$200 million in China. Yanzhou is its only manufacturing base in Asia Pacific.

"In addition to the Chinese market, the new plant will serve Japan, Australia, Southeast Asia as well as North America," Gori said. "We hope we can export half the production eventually, and if exports are good, we will increase capacity."

Pirelli previously imported its tires in China. As a premier high-end tire supplier, Pirelli partners with a range of high-end and luxury auto makers as original equipment manufacturers. Gori said it's in talks with several domestic and multinational companies in China on OEM partnership with the new plant.

(Shanghai Daily November 28, 2007)