Italian firm Pirelli is set to significantly boost production capacity at its Romanian tyre plant after announcing a significant funding package.
The tyre manufacturer has confirmed that it will invest 160 million euros (£140 million) in its Slatina-based plant, which first opened in 2008.
The project, which is due to be completed by 2013, will increase the facility's annual production capacity to around ten million units.
It will be partially funded by the Romanian government, who have pledged to invest approximately 28 million euros (£24 million) in the plant.
Giuseppe Cangelosi, general director of Pirelli Tyres Romania, claimed Romania is crucial to the company's growth plans.
He said: "The car tyre and steel cord factories in Slatina constitute a point of strength in the group's industrial strategy.
"The tyre facility is one of the biggest car tyre factories in the world and allows Pirelli to satisfy the market's demands in the premium segments, which are growing at a fast pace both in Europe and the rest of the world."
Posted by Danielle Barge