Sustainability Channel

NEW ORGANIZATIONAL STRUCTURE

The Board of Directors of Pirelli, which met today, reviewed and approved a new organizational structure for the Group. Coherently with the strategy and aim of the 2009-2011 industrial plan to focus on the core business, the company decided to simplify its organizational structure and regroup all activities directly supporting the core business under a new “Tyre and Parts” Department, to be headed by Francesco Gori, who also maintains his role as CEO and Managing Director of Pirelli Tyre.

The reorganization will allow for significant downsizing of the corporate level structures, with savings, once the reorganization is completed, of at least 10 million euros on an annual basis starting in 2010, and regrouping of operating activities necessary for growth of the core business: tyres (Pirelli Tyre) and filters (Pirelli Eco Technology) within the new Department, thus ensuring one single management of corporate processes. This Department will incorporate the activities of Purchasing, Administration and Control, Pirelli Labs, Advertising and Events, Human Resources, Health, Safety & Environment (which also reports to the Group General Counsel), and the Service Centers for information technology and administrative activities.

In addition to the new Department, the following will report directly to the Chairman:

• the Group General Counsel, Francesco Chiappetta, who will be in charge of, in addition to Legal and Corporate Affairs, Group Compliance, the Risk Officer, Industrial Property, and Security;
• the Finance Department, led by Francesco Tanzi, who joins the Group and who will be in charge of Finance, Tax, Budget, Risk Management and M&A. Francesco Tanzi was also appointed by the Board of Directors to be the Manager mandated to draft corporate accounting documents;
• the Institutional and Cultural Affairs Department, headed by Antonio Calabrò;
• the Image and Brand Extension Department, headed by Andrea Imperiali;
• the Investor Relations Department, headed by Valeria Leone;
• the Media Communications Department, headed by Maurizio Abet.

The following will also report directly to the Chairman: Maurizio Sala, as Group Controller (also in charge of Administration and Control for Pirelli Tyre); Human Resources, headed by Fabrizio Rutschmann, for HR strategy and senior management HR; Internal Audit, headed by Maurizio Bonzi; Pirelli Broadband Solutions; Pirelli Ambiente and PZero.

In line with the focus on industrial activities, the reorganization includes closing the Operations Department, headed by Claudio De Conto, who managed with skill and authority the roles and functions assigned to him in recent years. Claudio De Conto, who participated in mapping out the above-indicated Group reorganization, will now focus his activity, as CEO Finance, on Pirelli Real Estate. Together with the other CEO of Pirelli RE, Giulio Malfatto, Claudio De Conto will continue to manage the positive turnaround process underway.

To download the .pdf document, please access Press Release section of our site.

CHINA, ANTIPARTICULATE FILTERS GROW

• with the the Italian Ministry for the Environment, Land and Sea, the Ministry of Environmental Protection of the People’s Republic of China in the presence of the Italian Minister, Stefania Prestigiacomo, Chinese authorities, and the Chairman of the Pirelli Group, Marco Tronchetti Provera. The agreement foresees collaboration among the three parties in development of projects for distribution of filter systems for reduction of particulate emissions from diesel vehicles already in circulation (‘retrofit’) and introduction of technologies and advanced products, as the Pirelli products have been shown to be following tests and pilot projects already completed. Part of the environmental cooperation program launched by the two ministries in 2000, the agreement  focuses on the five provinces recently singled out by the Chinese government for adoption of measures to limit circulation of polluting vehicles, among which Shandong (the location of the Pirelli plant).

   

• between the Italian Ministry for the Environment, Land and Sea, the Municipality of Beijing and Pirelli Eco Technology to support installation of filters on polluting vehicles circulating in Beijing, is part of this commitment. The agreement follows the completion of a pilot project launched in 2008, which brought homologation of the filters produced by the Pirelli Group, thanks to their particular technological characteristics. The city of Beijing has already ordered a significant quantity of  Pirelli Eco Technology filter systems which will be fitted on buses in the capital city.

   

•  with Hixih Group (previously the Yinhe Group), already a partner of Pirelli since 2005 in tyre manufacturing, to build a plant for manufacturing of filters in Yanzhou, in the province of Shandong.

   

The new factory, whose construction is expected to begin in the first quarter of  2010, will be located in the same area where the manufacturing sites developed by the two partners for production of truck and car tyres were built, and will thus create a diversified industrial hub able to profit from synergies in manufacturing and distribution of the two products. The investment, already included in the 2009-2011 industrial plan, will take into account the evolution of the market and could reach 50 million euros in three years, with manufacturing capacity of around 100,000 filters per year and approximately 1200 employees. The industrial site currently uses advanced manufacturing technology and represents a manufacturing, logistics and commercial hub for the entire Asia-Pacific region for the Pirelli Group. Today about 60% of Pirelli’s overall production in China is for the local market, while the remaining 40% is exported to other Asia-Pacific markets.

PIRELLI PARTNERS EU-OSHA "HEALTHY WORKPLACES" CAMPAIGN

Pirelli has officially adhered as “Partner” to the ”Healthy Workplaces” European campaign, managed by the European Agency for Safety and Health at Work (EU-OSHA)

The Agency has run an annual European Campaign since 2000. With more than 30 countries participating, and some 4 million information materials distributed in all official community languages, the European Campaign has become one of Europe’s largest annual awareness-raising campaigns.

The Campaign faces a different theme each two years and, for 2008 and 2009 the subject is “Risk Assessment”. The two-year risk assessment campaign seeks to promote the idea of a participatory approach to risk assessment. It is essential for the workforce to be consulted and involved in the risk assessment to ensure that hazards are identified not only from principles of knowledge but also by knowledge of working conditions and patterns of adverse effects upon workers.

Pirelli’s engagement within this Campaign range from spreading of a risk prevention “culture” through both internal and external company communication channels, to organizing ad hoc meetings by Pirelli sites with the participation of Representatives form the Agency.

The spirit with which Pirelli adheres to the Campaign has been clearly expressed by Francesco Gori, CEO and Managing Director Pirelli Tyre:  “Attention to health and safety in the workplace has always been an important part of the culture of Pirelli, in all our factories and offices throughout the world. Knowledge, understanding and above all internal sharing of the concept of risk are key elements that we focus on, with the goal of raising the general awareness of the Company on a theme which, more than a collection of rules to respect, is a matter of culture. It is with this spirit that we adhere to the EU-OSHA campaign.”

More on the Campaign and on Pirelli’s engagements in the dedicated web page of the Agency’s site http://osha.europa.eu/en/campaigns/hw2008/partners/Pirelli