Prometeon announced plans to increase production at its Gravatai the expansion plans were announced during a meeting with local Governor Eduardo Leite at the Piratini Palace Eduardo Fonseca said the company will increase production of agricultural tyres by around 30 per cent and hire 40 employees at the factory in Gravataí Prometeon runs two industrial units in Brazil – in Gravataí and Santo André – where tyres for trucks buses and agricultural vehicles are produced The Gravataí unit staff totals 2,200 employees the latest announcement was the second expansion at Rio Grande do Sul this year Prometeon reportedly increased production of truck tyres and hired 210 works resulting in a 20 per cent increase in the workforce compared with the start of the year Further expansion work in 2022 and 2023 means Gravataí will break through the 1 million-tyres-a-year mark during 2022 The local Prometeon management’s comments suggest the bulk of production is for regional markets as opposed to global exports: “The market for agro tyres and trucks and buses in Brazil has been growing rapidly since the greatest impact caused by the pandemic at the beginning of last year the advance of vaccination and life returning to what we consider normal the demand for these products is extremely heated,” Prometeon Americas CEO Eduardo Fonseca is reported as saying If you would like the latest news from the Chinese tyre industry in Chinese, visit our partner site TyrepressChina.com REORGANIZATION OF PRODUCTION STRUCTURE TO ACCELERATE FOCUS ON HIGH VALUE PRODUCTS MAXIMIZE EFFICIENCY AND ENSURE COMPETITIVENESS STRENGTHENING OF FACTORY IN CAMPINAS (SAN PAOLO) WITH THE CREATION OF A PRODUCTION HUB FOR HIGH VALUE CAR MOTO AND MOTORSPORT TYRES FOR LATIN AMERICA; 300 NEW HIRES SEEN BY 2022 IN GRAVATAÍ (RIO GRANDE DO SUL) ACTIONS WILL BE TAKEN TO MITIGATE THE SOCIAL IMPACT OF THE TRANSFER OF MOTO PRODUCTION TO CAMPINAS PIRELLI AND PROMETEON TYRE GROUP WILL RECIPROCALLY EVALUATE ACTIONS AIMED AT MITIGATING EMPLOYMENT IMPACTS 13 May 2019 – Pirelli confirms its strategic presence in Brazil through a reorganization of its production structure which will facilitate the acceleration of its the focus on High Value products and improve the competitiveness of its manufacturing sites in the Country considering also the difficult economic context The Company foresees a 120 million euro investment plan for the period 2019-2021 for the modernization and reconversion of its production plants from Standard to High Value and the ongoing improvement of the mix and quality in the factories of Campinas (San Paolo) and Feira de Santana (Bahia) These investments are in addition to the 320 million euro already deployed in the period 2013-2018 This reorganization will make Pirelli’s presence in Brazil more solid and more competitive the reorganization calls for the strengthening of the factory in Campinas through the transfer of Moto tyre production from the plant in Gravataí (Rio Grande do Sul) This reorganization will facilitate the creation of an industrial hub to serve the markets of Latin America which will be dedicated to the production of Car This operation will permit the optimization of production processes and logistics flows also thanks to the Campinas plant’s favourable position closer to the production of facilities of car and motorcycle makers and its enhancement will permit the hiring of around 300 people by 2022 The resources relative to the reorganization are mainly derived from the signing of the fiscal agreement for the Patent Box go towards the further focus on High Value and faster reduction of the Standard segment with the goal of finding an agreement with unions during the period of production transfer the Company will take all possible actions to mitigate the social impact at the Gravataí plant as a first step on this path and considering the confirmation received from Prometeon Tyre Group Brazil of its industrial presence in Gravataí Pirelli and Prometeon Tyre Group will reciprocally evaluate actions aimed at mitigating the effect on employment compatibly with the conditions of the local market and the competitiveness of the respective businesses Welcome to www.automotivelogistics.media. 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Read our policy By 2015-05-13T14:18:17+01:00 General Motors has been forced to halt production at its plant in Gravatai Brazil because of a dispute with its outbound transport providers Tegma and Transzero over freight costs The carriers are reported to have stopped picking up vehicles made at the plant forcing it to stop output Tegma insists it has maintained loading procedures at Gravatai and has only been stopped today (Wednesday 13 May) because of regional strike action The dispute had also affected the carmaker’s plants at São Caetano do Sul and São José dos Campos but disruption affecting outbound shipments at these two plants Tegma and Transzero do not supply transport services at those plants “After reaching an agreement with all carriers in São Caetano do Sul and São José dos Campos GM regrets the decision of Tegma and Transzero to stop outbound logistics at the Gravatai plant,” said the carmaker in a statement “As we face a difficult situation in the Brazilian market GM believes we should work together focusing on overcoming the challenges to contribute to the economic recovery is to keep the unit operating in three shifts and this unilateral action forced us to stop production We reaffirm our commitment to continue negotiations on the freight costs and are looking forward to reach an agreement that will not compromise our competitiveness in the Brazilian market.” Tegma told Automotive Logistics that its management was surprised by GM's statement that it had taken strike action prior to Wednesday's developments It said that it was "not true that Tegma had paralysed [GM] operations" and said its other operations beyond Gravatai were operating normally "As a participant in the automotive industry Tegma has made every effort to make its operations even more efficient in order to contribute to the collective effort to restore the growth of the sector," said a company spokesperson The disruption adds to problems that a number of carmakers are facing in Brazil as the economy declines Vehicle sales there have dropped by 17% in the first quarter of this year Carmakers including GM and VW having been cutting back production in response Labour disputes over the layoffs stopped production at GM’s plant in São Jose de Campos back in February this year Site powered by Webvision Cloud