Takeover to boost Pirelli tire sales

Giuseppe Cattaneo, chief executive of Pirelli Asia Pacific

"Expansion of our production capacity has allowed us to produce more varieties of tires that would fit Chinese home-developed vehicles," Cattaneo told China Daily, adding the company has plans to expand its retail network considerably to take advantage of a growing demand for private-owned cars.

The company has around 3,000 retail outlets across the mainland, making it among the top five suppliers, and Cattaneo said that is expected to grow to 4,500 by 2017.

"We have a very good relationship with our retail network, which has resulted in a highly profitable operation," said Cattaneo.

Zhong Shi, a Beijing-based independent auto analyst, said he expected ChemChina's takeover of Pirelli would help it grow market share in China, particularly in the industrial end of the market.

However he expected the company to "spin off its less profitable truck business", given that it has already gained considerable large market share in the premium tire sector.