Pirelli’s ‘superfactory’: Tyre-makers tread boldly into a new age

Car tyres have for decades been one of the most complex and frustratingly labour-intensive products to make. The tire industry is notorious for its intense labour and lack of mechanization.   Many parts are traditionally- even today! – made by hand.   For years, experts have been searching for an efficient and more mechanized method.

              From deep in the Georgia peach trees comes a report that Pirelli, the Italian based tire manufacturer, has begun to establish a factory that may cause an upsurge in mechanization.

Pirelli of Italy is creating a “superfactory”, using fiercely guarded new technology that requires 10 per cent of the space of conventional process. From it, Pirelli plans to invade the North American market with up to 6m tyres a year. Its chosen base in Georgia town called Rome is entirely fortuitous, says Pirelli.

At full capacity, the new plant would allow Pirelli to meet much of the project demand from the North American market for the high-performance and premium sports utility vehicle tyres that it now regards as its core business

This large factory will use a new technique named modular integrated robotized systems (MIRS.)   This new technique allows makers to forgo large factories, sometimes even making the tires next to assembly lines.   Such a move may help cut response time in delivery, implementing a ‘just in time’ tire production scheme.

              The “big three” tire manufacturers (Michelin, Goodyear and Bridgestone) have all begun similar systems.   Pirelli appears to have an advantage in the quality of tires its MIRS produce, as well as the potential market advantage of having a large factory in the American market.

              This new development may significantly affect economies of scale factors in the tire business.   It remains to be seen if Pirelli can use its technology seize a place in the triumvirate.

Pulled from Financial Times article by John Griffiths, Friday May 23 rd .