www.pirelli.

com
The Mission
In all parts of the world,
tyres and cables and
systems are essential to
national economies in the
areas of transportation of
people and goods, and
transmission of energy and
information. Pirelli’s
business is centred on
these key markets in which
we are among the world
leaders and innovators.
For more than a century we
have grown as a truly
multinational corporation,
deeply rooted in local markets
throughout the world and
building upon our two core
product sectors.
Our technological and research
capacity in terms of
professional skills and resources
will continue to be a great
source of our strength. This,
coupled with close involvement
with customer requirements,
enables us to manufacture and
market good value, high quality
products and to operate
successfully from our bases
around the world. A high
priority is extended to
continuous improvement in the
environmental impact of our
processes and products.
Our management objective is This framework will enable us
the achievement of an effective to finance our continued growth
balance between personal through adequate profits, in the
accountability and team work, interest of our shareholders,
central guidance and local customers and employees.
operating responsibility.
In the last year, with the
objective of creating ever more
value, we have taken the road to
new technologies in order to
change into a company with
integrated on-line operations,
from purchasing to production,
from distribution to sales.
1
 The group in figures
2
Pirelli S.p.A. is the holding The Group’s activities are Group sales in 2001 by geographical area and sector
Company which owns and focused on three core
controls all the Group’s businesses, energy cables and
4
operations worldwide; it systems, telecom cables and
assures maximum systems and tyres (47%, 15% 3
3 1
coordination of the different and 38% respectively on total 1
affiliates in 24 countries sales). 2
across 5 continents.
Sales are distributed as 2
follows: Europe 61%, North
America 14%, Central and
1 Europe 61% 1 Energy Cables and 47%
South America 12%,
2 North America 14% Systems
Australia, Africa and Asia
3 South America 12% 2 Telecom Cables and 15%
13%. Systems
4 Australia, Africa e Asia 13%
3 Tyres 38%

Summary Data (Euro/mill.) 2001 2000 1999 1998

Consolidated sales 7,509 7,477 6,482 5,487
Gross operating profit 666 820 678 721
Operating profit 295 437 331 412
Net income 86 3,626 305 276
Shareholders’ equity 5,660 5,958 2,275 2,283
Net financial indebtedness 1,089 3,495 1,017 265
Gearing 0.19 0.59 0.41 0.11
R&D expenditure 237 213 200 196
Employees (no.) 39,127 41,914 40,103 38,209
Sales per employee (E/thous.) 185 178 162 149
Factories (no.) 84 87 87 73
Countries (no.) 24 24 21 20
Controlling structure
at December 31, 2001

Pirelli & C.

38,37%

Pirelli S.p.A.

100% 100% 100%

Pirelli Tyre Holding N.V. Pirelli Cavi e Sistemi Energia S.p.A. Pirelli Cavi e Sistemi Telecom S.p.A.

Operating structure

Chairman and CEO

Marco Tronchetti Provera

Managing Director and Managing Director and

General Manager General Manager
Operating Activities Finance Administrator
Giovanni Ferrario Carlo Buora

Energy Cables Telecom Cables Administration

and Systems and Systems Tyres and Control Finance
General Manager General Manager General Manager General Manager General Manager
Valerio Battista Kevin Riddett Francesco Gori Claudio De Conto Luciano Gobbi
3
 Energy Cables and Systems: world number one
4
With 14,200 employees and
54 plants in 22 countries in
all Continents and total
2001 sales of more than
Euro 3,500 million, Pirelli
Energy Cables and Systems
is the international leader
in its field, with a market
share of 8%.
A role recently strengthened
by numerous acquisitions: in
1998 the Energy Cables
Division of Siemens with
operations in 14 countries; in
1999 Metal Manufacturers Ltd
in Australia; in 2000 the
energy cables activities of
Draka Holding in Holland and
Finland, as well as those of
BICCGeneral in Europe,
Africa and Asia.
Production comprises electric
cables – from very high to low
voltage, for underground,
submarine and aerial
applications – and a vast
range of accessories.
The market demands
advanced technological
solutions, especially at high
and extremely high voltages,
with the principal objective of
increasing the
competitiveness of systems in
cable, guaranteeing at the
same time growing levels of
reliability. Pirelli has
provided a significant
response in this area, with the
The energy cables factory
at Baoying, China
The cable laying ship
Giulio Verne at work
development, production and
qualification of cables and
accessories of high electrical
stress and reliability, usable
up to the maximum operating
voltages used in the countries
of the world and with the
definition of innovative cable
undergrounding solutions, for
which the Group has
developed leading technology.
Recently, the need to bury
aerial electricity lines has
become ever more pressing,
both to guarantee the safety
and reliability of the electrical
network and to reduce the
impact on the environment.
Pirelli has recently developed
and patented a series of
advanced technologies
(CompactTM, Pit-stopTM,
Opto-powerTM, AirbagTM) aimed
at reducing the time and cost
of laying cables underground
by over 60%. The AirbagTM
system, which optimises all
the phases of installation and
servicing, is not only for
terrestrial use: its lightness
and easy handling allow to
widen its use also in
submarine links.
The medium and low voltage
product range has been
substantially renewed to
respond to all the needs of
markets ever more
internationalised and
selective. The renewal of
materials, designs and
processes enables Pirelli to
compete with a wide range of
standard and special products
for the most diverse
applications. Pirelli product
performance also leads in
critical applications (for
example, extremely high
temperatures, fire, chemical
agents and nuclear radiation,
applications).
During the course of 2001, an
on-line order management
system was completed for all
14 affiliates throughout the
world in the general market:
the year concluded with 30%
of orders being received
electronically. The system will
also be launched and
introduced in the special and
industrial cables department.
By the end of 2002, over 50%
of the Sector’s orders will be
processed on line.
A section of the AirbagTM
cable, production of which
began in 2001
Pirelli also leads in 2001 sales of Pirelli Energy
production and installation of Cables and Systems
turnkey submarine links, and by geographical area
has developed high voltage
cables and accessories suitable 4
for installation at depths up to 3
2,000 metres.
Pirelli has its own submarine 2
cable-laying ship, the Giulio 1
Verne, one of the few in the
world able to lay any kind of
cable, even in adverse weather
conditions. 1 Europe 70%
2 North America 10%
3 South America 9%
4 Asia, Oceania and others 11%
2001 sales of Pirelli Energy
Cables and Systems
by product category
3
1
1 Cables for utilities 42% 5
2 Cables for the 32%
general market
3 Special cables 18%
4 Others 8%
 Telecom Cables and Systems: technology in constant evolution
6
The world of
telecommunications is
constantly evolving in line
with our ever increasing
needs and demands for
better and faster
information services. The
convergence of telecoms,
I.T. and entertainment
services and the further
globalisation effect of
Internet are driving the
growth in demand for
multimedia interactive
services by both large and
small users.
Long-Haul terrestrial,
submarine and access networks
must provide the capacity and
the bandwidth to support these
new services and their rapid
acceptance.
Consequently, optical
communications is moving
ever closer to the business and
private end-user. Today’s
advanced transmission
technologies permit the
maximum exploitation of the
optical fibre, in particular
through the multiplication of
the wavelengths and other new
capabilities. These technologies
generate high return on
investment by maximising the
use of existing networks and by
increasing the reliability of
network systems, which become
more flexible and easier to
maintain.
A phase in the production
of optical fibre
Optical technology research
in the Pirelli laboratories
Pirelli has been able to
anticipate the development of
the optical telecommunications
market, launching new
technologies and products that
have resulted in operations of
high economic yield. Today,
Pirelli employs 4,100 people in
Cables and Systems for
telecommunications, has 18
factories in 12 countries and
achieved a turnover in 2001 of
more than Euro 1,200 million.
Pirelli continues to maintain a
strong emphasis on innovative
research so as to continue to
reinforce its innovative cycle.
Product lines include all types
of optical fibre from standard
Single-mode to the latest
generation of long distance high
performance design
(FreeLightTM, WideLightTM).
Moreover, new developments
create innovative solutions in
the field of Fibre To The Home.
In this sector in April 2001,
Pirelli and e.Biscom signed a
collaboration agreement under
which, among other things, they
will jointly develop new means
of access to the Internet and
Internet Video through optical
fibre. In June 2001, Pirelli
acquired 15.4% of Alloptic, a
start-up American leader in the
supply of advances in IP optical
fibre, to increase the
development of new optical
solutions for access networks.
Advanced optics are the
objective of leading-edge
research being carried out in
the Pirelli Labs that represent
the highpoint in the Group’s
advanced exploration.
The Labs, which extend for
13,000 square metres in the
Milan-Bicocca area, are in
direct contact with all of Pirelli’s
research centres throughout the
world and with important
university research facilities,
which create a significant
synergy between Academia and
Industry. In the field of nano-
manufacture, the Labs have the
most modern equipment for
both research and for transfer to
production: the laboratories
will, in fact, have the
responsibility to create
prototypes of new modules and
bring to life new technologies.
These investments increase the
competitiveness of Cables and
Systems Telecom which,
operating in a world of daily
evolution, has established over
the years the ability to
anticipate the development of
the markets.
The shares reached in all
markets confirm the excellence
of Pirelli’s solutions. Among
others, Pirelli has won contracts
with USWest/Media ONE for all
its optical supplies until 2002,
and in Australia with Telestra
for optical cables until 2004.
In May 2001, Pirelli and
Siemens signed an agreement
for joint optical terrestrial and
submarine development. The
consortium’s first contract was
agreed with Indonesia’s PT
Telkom for the construction of a
high performance optical fibre
backbone on the island of
Sumatra, and with IP1 in
Australia for a link between the
east and west coast of the
continent, between Melbourne
and Perth.
The factory at Sorocaba,
Brazil, with its fibre optic
drawing tower
Pirelli’s strong commitment in 2001 sales of Pirelli Telecom
submarine optical systems is Cables and Systems
illustrated by a wide range of by geographical area
advanced solutions: the
Company is one of the world
4
leaders in turnkey systems,
1
with and without repeaters, for
which it has developed its own 3
advanced technology through
its research unit and in-house
production of all system 2
components. During the first
three months of 2002, a 320 km 1 Europe 37%
long wide band 2 North America 29%
telecommunications link was 3 South America 14%
installed between Algeria and 4 Asia, Oceania and others 20%
Majorca.
On the basis of its optics
research capability - the heart of
value creation within the
Group - Pirelli Telecom Cables
and Systems has become a
world-class technological 2001 sales of Pirelli Telecom
partner of its clients. Cables and Systems
by product category
3
2
1 Telecom & Fibre Cables 84% 7
2 Submarine Optical 10%
Systems
3 Connectivity, 6%
FTTH, Installation
 Tyres: power is nothing without control
8
The Tyre Sector has 21
factories and about 20,000
employees in Argentina,
Brazil, Egypt, Germany,
Great Britain, Italy, Spain,
Turkey, the United States
and Venezuela, and a
marketing network
covering over 120 countries
around the world. The
company is one of the
world’s top tyre
manufacturers, with sales
of over Euro 2,800 million.
The Sector’s product range is one
of the most complete in the
industry, comprising tyres for
cars (standard, high
performance and motorsport),
for trucks, buses, motorcycles
and other two-wheeled vehicles.
From the technological
standpoint, the company has
always succeeded in imposing
an international leadership
position, making a considerable
contribution to the development
of tyre quality and performance.
Equally important progress has
also been made in process
technology; as a result of
extensive capital expenditure,
the Group’s factories have
undergone radical changes in
recent years, with large-scale
conversion to third generation
automated processes. The MIRS
(Modular Integrated Robotized
System) process technology is
able to drastically reduce the
time, space and number of
phases it takes to make a tyre.
The total investment for this new
technology is Euro 250 million
within 2003. After the
inauguration of the first
production line in Milan in
2000, the second car tyre module
came into operation at Bicocca
as planned in 2001.
The new Eufori@ tyre,
manufactured with the
MIRS system
Pirelli won its 18th world rally
championship when Richard Burns
took the 2001 title
Prototype machinery for the
manufacture of motorcycle and
truck tyres has also been
commissioned. In Germany, the
first three of a scheduled total of
13 MIRS modules are making
Eufori@ Run Flat tyres, while at
Burton-on-Trent in the United
Kingdom two lines have already
begun to manufacture tyres. A
new MIRS line is also at a very
advanced stage of construction
in the United States at Rome,
Georgia.
The estreme flexibility provided
by MIRS in all phases of the
production process has enabled
Pirelli to build the Run Flat
system, which even permits a
tyre to function at zero pressure.
The Pirelli Eufori@ Run Flat can
cover over 150 kilometres in a
completely deflated condition,
travelling in perfect safety at
speeds of up to 80 km/h.
The high-tech image enjoyed by
the Group internationally stems
from extensive research
activities carried out in its
centres in Italy, Germany, Brazil
and the United States. These are
flanked by outdoor track tests
and successes in motorsport. The
market and the automotive
industry have recognised this
leadership, awarding Pirelli an
ever-growing number of
homologations: all the major
world’s car manufacturers today
fit Pirelli tyres as Original
Equipment. In particular, Pirelli
is market leader in both Original
Equipment and Replacement in
the high performance car tyre
segment.
The Tyre Sector’s current efforts
are primarily directed at
maintaining the strong
positioning gained by its recent
generations of low and ultra-low
profile car tyres that contribute
to the consolidation of the Pirelli
brand leadership with the most
prestigious car-makers
worldwide. The competitive
position is reinforced by
agreements with the major
competitors. In purchasing, a
portal for on-line procurement
was started in 2000 by Pirelli,
together with Bridgestone,
Continental, Cooper, Goodyear,
Michelin and Sumitomo. In
research, the 1999 agreement
with Michelin to jointly further
develop the Pax System – which
resulted in the first Pirelli
prototype, a low profile high
performance unit.
In addition, Pirelli is
progressing with new
developments in truck tyres that
will satisfy the exacting
requirements made by faster,
more powerful vehicles, while
offering savings in weight and
fuel consumption. The Sector’s
positioning in the segment was
strengthened in June, 1999, by
the acquisition of a controlling
interest in the Alexandria Tire
Company of Egypt, a radial ply
truck tyre factory built by Pirelli.
Significant results come from
motor sport. For many years,
Pirelli has competed for the
world rally championship, in
which its tyres are used by the
Subaru and Ford teams, and on
the track in the Ferrari
Challenge and the Porsche Cup.
With driver Richard Burns and 2001 sales of Pirelli Tyres
the Subaru Impreza WRC, Pirelli by geographical area and
won the 2001 World Rally product category
Drivers’ Championship.
On the two-wheel front, Pirelli 6 1
5
won two Cross world
championships in 2001, in the
4
500 cc class with Stefan Everts of
Belgium on a Yamaha and in the
250 cc class with Mickael Pichon 2
3
of France riding a Suzuki.
The activities of the Pirelli Tyre
Sector are constantly reinforced 1 Italy 13%
by high profile image 2 Other European 46%
enhancement initiatives, from countries
the Calendar, assigned each year 3 North America 7%
to one of the world’s most famous 4 South America 22%
photographers, to international 5 Asia 5%
advertising campaigns of major 6 Other countries 7%
impact with endorsers such as
Sharon Stone, Carl Lewis and
Ronaldo, when not the product
itself, as with the most recent 2001 sales of Pirelli Tyres
campaign, “The Grip”. by product category

4 5
3

1
2

1 Car tyres 53%

2 Industrial and 31% 9
commercial vehicle tyres
3 Motorcycle tyres 7%
The MIRS factory at Breuberg, 4 Agriculture tyres 2%
Germany 5 Other tyres 7%
 Geographical presence
10

Pirelli worldwide
 Energy Cables Telecom Cables Tyres Energy Cables Telecom Cables Tyres
and Systems and Systems and Systems and Systems

Europe North America

Austria ■ ■ ■ Canada ● ■ ■
Belgium ■ Mexico ▲ ▲ ■
Czech Republic ■ ■ United States ● ● ●
Finland ●
France ● ● ■ Asia
Germany ● ■ ● China ● ●
Great Britain ● ● ● Japan ■
Greece ■ India ■ ▲ ▲
Hungary ● ■ ■ Indonesia ● ●
Italy ● ● ● Malaysia ● ▲
Netherlands ● ■ ■ Philippines ▲ ▲
Norway ■ Saudi Arabia ▲
Poland ▲ ■ Singapore ▲ ▲ ■
Portugal ● ■ Thailand ▲ ▲
Romania ● ● United Arab Emirates ▲ ▲ ▲
Russia ▲ ▲ ▲
Slovakia ● ■ ■
Spain ● ● ● Africa
Sweden ■ ■ Egypt ●
Switzerland ■ ■ Ivory Coast ● ▲
Turkey ● ● ● Kenya ▲
Mozambique ▼
South America South Africa ● ■
Tunisia ▼ ▼
Argentina ● ● ●
Zimbabwe ▼
Brazil ● ● ●
Chile ◆ ■
Colombia ▲ ■ Oceania
Uruguay ◆ Australia ● ● ■
Venezuela ● New Zeland ■ ■

Energy Cables and Systems Telecom Cables and Systems Tyres

Industrial Activities ● ● ●
Sales Activities ■ ■ ■
Minority Participations ▼ ▼ ▼
Installation Activities ◆ ◆ ◆
Resident Representatives ▲ ▲ ▲
11
 The manufacturing facilities
12 (2000 data)

Argentina Australia
Energy Cables and Systems ● Energy Cables and Systems ●
Sales (Euro / mill.) 132 Sales (Euro / mill.) 60.2
Area di Buenos Aires Employees 750 ● Employees 522
● ●
Factories 2 (1 shared) Factories 2
●
Telecom Cables and Systems ● ● Telecom Cables and Systems ●
Sales (Euro / mill.) 56.8 Sales (Euro / mill.) 65.1
Employees 269 Employees 216
Clayton, Vittoria
Factories 1 (shared) Factories 1
Liverpool, New South Wales
Tyres ● Dee Why, New South Wales
Sales (Euro / mill.) 91.6
Employees 534
Factories 1

Brazil Canada
Energy Cables and Systems ● Energy Cables and Systems ●
Sales (Euro / mill.) 323.9 Sales (Euro / mill.) 219.2
Bahia Employees 895 Employees 352
●
Factories 4 (1 shared) Factories 2

●
●●
Area di San Paolo Telecom Cables and Systems
● ● Sales (Euro / mill.) 130.9
Employees 172 Prescott, Ontario
Gravataí
● Factories 1 (shared) Saint - Jean, Québec

Tyres ●
Sales (Euro / mill.) 653,3
Employees 5,544
Factories 5

Alessandria
Tianjin China Egypt
Energy Cables and Systems ● Tyres ●
● Sales (Euro / mill.) 91.8
Sales (Euro / mill.) 44.2
Baoying ● Employees 307 Employees 697
●
Factories 2 Factories 1
●
Telecom Cables and Systems ●
Sales (Euro / mill.) 54.1
Employees 252
Factories 1
Wuxi
 Angy
Amfreville
Finland Trègastel
●
France
Cavi e Sistemi Energia ● ●● Energy Cables and Systems ●
Fatturato (Euro / milioni) 101,1 Sales (Euro / mill.) 393.6
Dipendenti 328 Employees 2,122
Stabilimenti 1 La Bresse Factories 7
●●
Telecom Cables and Systems ●
●● Sales (Euro / mill.) 65.6
Employees 256
●
Factories 2
Pikkala ●
● Sens Paron
Gron
Chiarvieu
Chavanoz

Schwerin
Germany Great Britain
● Energy Cables and Systems ● Energy Cables and Systems ●
Berlino Sales (Euro / mill.) 345.1 Erith Sales (Euro / mill.) 956.3
●
Merzig Employees 1,103 Employees 2,383
● Factories 3 Carlisle Factories 5 (1 shared)
●
Tyres ● Bishopstoke
Neustadt Telecom Cables and Systems ●
● Sales (Euro / mill.) 662 Prescott
Breuberg Sales (Euro / mill.) 211.5
●● Employees 3,218 Wrexham ● Employees 607
●
Factories 3 Newport ● Factories 3 (1 shared)
Aberdare
● ● ● Tyres ●
Sales (Euro / mill.) 407.6
Employees 1,853
Harlow
Factories 1

Balassagyarmat
Hungary Indonesia
Energy Cables and Systems ● Bukit Indah Energy Cables and Systems ●
Sales (Euro / mill.) 108.1 Sales (Euro / mill.) 21.6
●
Budapest Employees 623 Employees 142
●
Factories 3 Factories 1 (shared)
Kistelek Telecom Cables and Systems ●
●
Sales (IEuro / mill.) 10.2
Emlpoyees 52
Factories 1 (shared) 13
14
Area di Milano
Italy Ivory Coast
Area di Torino ● ● ● Energy Cables and Systems ● Energy Cables and Systems ●
●●● ●
Merlino Sales (Euro / mill.) 287 Sales (Euro / mill.) 8.1
Figline Valdarno Employees 2,169 Employees 89
● Factories 9 (1 shared) Factories 1
Livorno ●
●
Ascoli Piceno Telecom Cables and Systems ●
Sales (Euro / mill.) 274.5 ●
Arco Felice ● Employees 1,246
●
● Factories 3 (1 shared)
Battipaglia Abidjan
Tyres ●
Pignataro Maggiore Sales (Euro / mill.) 766.1
Employees 4,178
Giovinazzo Factories 5

Kuala Lumpur Malaysia Netherlands

● Energy Cables and Systems ● Delft Energy Cables and Systems ●
●
Sales (Euro / mill.) 3.1 Sales (Euro / mill.) 74.4
Employees 186 Employees 284
Factories 1 Factories 1

Portugal Romania
Valadares Energy Cables and Systems ● Energy Cables and Systems ●
●
Sales (Euro / mill.) 13.6 Sales (Euro / mill.) 34
Slatina Employees 168
Employees 147
Factories 1 Factories 1 (shared)
Telecom Cables and Systems ●
Sales (Euro / mill.) 16.8
Employees 103
Factories 1 (shared)
Bratislava
Slovakia South Africa
Energy Cables and Systems ● Vereeniging Energy Cables and Systems ●
●
Sales (Euro / mill.) 57.8 Sales (Euro / mill.) 14.4
Employees 323 Employees 588
● Factories 1 Factories 1

Manresa
Spain Mudanya Turkey
Vilanova i la Geltrú Energy Cables and Systems ● Energy Cables and Systems ●
Sales (Euro / mill.) 265.1 ● Sales (Euro / mill.) 150
Employees 634 ● Employees 256
Factories 3 (1 shared) Factories 1 (shared)
●
●
Telecom Cables and Systems ● Telecom Cables and Systems ●
Sales (Euro / mill.) 75.9 Izmit Sales (Euro / mill.) 73.8
●
Employees 207 Employees 233
Factories 1 (shared) Factories 1 (shared)
Tyres ● Tyres ●
Sales (Euro / mill.) 257.1 Sales (Euro / mill.) 287
San Vincent
Employees 1,321 Employees 1,485
Factories 1 Factories 2

Colusa, California
United States Guacara
Venezuela
Energy Cables and Systems ● ● Tyres ●
Sales (Euro / mill.) 314.3 Sales (Euro / mill.) 76
Employees 481 Employees 460
● Factories 2 Factories 1

● Telecom Cables and Systems ●

● Sales (Euro / mill.) 364.5
● Employees 380
Factories 2 15
Tyres ●
Rome, Georgia
Sales (Euro / mill.) 179.3
Abbeville, South Carolina Employees 158
Lexington, South Carolina Factories 1
 More than 125 years of enterprise
16
In 1872 Giovanni Battista Pirelli, a
twenty-four year old engineer,
established Pirelli & C. in Milan
where, a year later, he set up the
first general rubber goods factory.
By the end of the century, with the
manufacture of insulated telegraph
wires (1879), submarine telegraph
cables (1886) and the birth of the
first bicycle tyre (1890), the
diversification process had begun.
The first passenger car tyre dates
back to 1901. Geographical
expansion begins with the cables
factories in Spain (1902), Great
Britain (1914) and Argentina
(1917).
Between the two World Wars, in
1927, the first oil-filled cable was
constructed, a fundamental
technological breakthrough. The
tyre front saw the launch of
Superflex Stella Bianca.
International expansion
continued: in 1929 cables started to
be manufactured in Brazil and
tyres in the United Kingdom.
Production of general rubber goods
was begun in Spain (1917),
Argentina (1919) and Belgium
(1938).
From the Twenties onwards, racing
drivers such as Nuvolari, Ascari
and later Fangio, began to score a
lengthy series of victories with
Pirelli tyres; to date the Company
boasts over 80 successes in as many
international Grand Prix and 6
World Driver Championships, not
to mention 18 victories with Alfa
Romeo and Ferrari in the
legendary “Mille Miglia” race.
After the Second World War, in
1948, the “Cinturato” radial tyre
was born; it was to leave its mark
on tyre history. Geographical
expansion continued: factories for
the manufacture of cables were set
up in Canada (1953) and Mexico
(1956), general rubber goods in
France (1957), tyres in Greece and
Turkey (1960).
The Sixties and the Seventies saw
further expansion. The Veith tyre
company was acquired in
Germany in 1963.
Cable manufacturing activities
were set up in Peru (1968) and
Australia (1975); cable activities
were purchased in USA (1978),
France and the Ivory Coast (1980).
These were also the years of the
union with Dunlop (1971), a
venture which foreran the trend
towards concentration that was to
develop later on in the rubber
industry. However, the external
environment was to have a strong
influence on the union, which was
severed in 1980.
In those years Pirelli invented the
low profile tyre which remains the
most significant technological
innovation since the radial tyre.
During the same period a real
revolution occurred in cables: fibre
optic cables appeared on the scene.
It was Pirelli in 1982 who first
started producing the fibre in Italy,
at Battipaglia. Manufacture was
immediately extended to other
affiliates abroad.
With the Eighties came a wave of
recovery for Pirelli. Many an
acquisition was made: Metzeler
and Armstrong in the Tyre Sector;
Filergie and Standard Telephone
Cable’s land telecommunication
cables activity in the Cable Sector.
After the demanding 1992-93
restructuring programme of the
Group, which also included the
divestment of the non-strategic
Diversified Products activities, in
recent years the Group started and
consolidated its international
relaunching, a stage characterised
by the development of new
technologies, the introduction of
new products and the opening up
of new markets (Indonesia, 1995;
China, 1996).
In recent years, Cables and Systems
reinforced their world leadership
in energy cables with the
acquisition of the activities of
Siemens in 14 countries in 1998,
Metal Manufacturers Ltd in
Australia, Draka Holding in
Holland and Finland (1999) and
BICCGeneral in Europe, Asia and
Africa (2000).
The new millennium opened under
the sign of e-Pirelli: a cultural
change which places the Group in
the forefront of the Internet
revolution.
2000 is the year of the sale of the
Terrestrial Optical Systems
business to Cisco Systems and the
sale of the Optical Components
business to Corning for an income
of more than Euros 5 billion for
revenues from these businesses that
had represented 3.3% of the total for
the entire Group: an
unprecedented value creation.
In 2001 Pirelli re-invested the
liquidity derived from this
operation to enter trough Olimpia
S.p.A. - the vehicle company
established with the Benetton
Group, BancaIntesa and
Unicredito – for a wide-ranging
industrial project in the Telecom
Italia Group, one of the largest and
most profitable utility companies in
Europe. It is in that way that an
asset swap was achieved, with the
evident strategic reinforcement of
the Group.
www.pirelli.com

Strike - June 2002