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My Favorite China's Brands
CLASS

Tronchetti Provera: following Chinese example for phase 2

April 14, 2020


Abstract : The CEO of Pirelli has talked about the new business partner Niu, who has aimed at joining the company for many years. CAMFIN will rely on a unified governance and there will be a partner who makes us reaching the 15%, the goal we wanted to reach with the options we had acquired.

MILAN, April 10 (Class Editori) -- "Monitoring the movements among different regions is essential to avoid the infection wave. Controls through smartphone apps have been extremely useful in China. Criticism is useless, what has happened in China is an objective fact: by respecting laws, they managed to contain the problem and they are coming back to normal in a very ordered way. We have resumed 75 percent of our production capacity there, two factories out of three are open". Marco Tronchetti Provera, interviewed by Class CNCBC, has given all-round answers to the hottest topics, including his future as leader of the group and the changes in the shareholding structure. However, he started from the ongoing economic emergency and the beginning of the inevitable phase 2, by also looking at the Chinese example.

As far as Bicocca is concerned, the top manager has mentioned the entry of a new Chinese shareholder, Niu Yishun, the billionaire who founded the Hixih Rubber Industry Group, already partner of Pirelli since 2005 through a JV agreement; it holds a potential by 5.195 percent, a shareholding held through the subsidiary Longmarch Holding SARL and relies on stocks which are subject to a repurchase agreement expiring on March 9, 2023.

"ChemChina has already purchased a part of stocks (0.4 percent). We have declared we are ready to buy. In the meantime, we are finalising an agreement with Mr. Niu, the businessman with whom we started our investments in China in 2005", Tronchetti Provera has underlined. "For many years he has aimed at establishing a partnership with us and he has seized this opportunity. CAMFIN will rely on a unified governance and there will be a partner who makes us reaching the 15 percent, the goal we wanted to reach with the options we had acquired. Therefore, we are strengthening ourselves as well as our company. I believe that this period of crisis is going to reveal a Pirelli company with an even more cohesive shareholding structure, which is looking at the future, as well as a management hardened by this period and all of those changes which will allow us to recover the value that today seems to be burned out. However, in the company it is still there, ready to express itself."

As for his future in Pirelli, he remembered to have already given an explanation: "Within a reasonable time, there will be someone who will lead the group and I will be close to the company. Many people inside the company have the right profile in order to well manage the group. It is an extraordinary management, which is living up to the crisis by taking advantage of it in order to strengthen Pirelli. Holding a stronger company will be an opportunity also for whom is going to succeed me. Because crises strengthen. Many young people at the top of the company have never lived a period of crisis before. The things we said were more difficult to be accepted without a crisis".

Moreover, space has been given also to the Government measures which will provide credit for businesses forced to close down. "In this moment we do not need liquidity. We could need it and, in that case, we will value every instrument case-by-case. But, again, I think that, while there is an effective protection for companies and people amounting up to 25,000 euros, higher amounts have to face a very dangerous bureaucratic load for which I am concerned. I wish that clear rules dealing with an immediate response to people would be added to the measure. The certainty to restart is needed because the energies stuck at home- talking about many young Italians- might become an amazing opportunity. We cannot steal from them with bureaucratic fetters which may thwart the whole effort made by the country and led by the Government".

(Source:Class Editori)

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