Pirelli Group, the world's fifth-largest tire maker, will pump US$90 million in China this year and double the figure to US$180 million in a couple of years as it makes tracks to be one of the main tire producers in the nation.

　　The investment includes plants to make radial tires for trucks and cars.

　　"This is the most important expansion plan ever undertaken by the Pirelli Group in the Far East," Pirelli said in a release yesterday.

　　As part of the investment, the company started operating its first tire plant in China to make radial truck tires yesterday in Shandong Province with Chinese partner Yinhe Group.

　　The venture between Italy-based Pirelli and Roadone Tyre Co Ltd, a Yinhe subsidiary, will make 1.2 million units of truck tires at full capacity.

　　The factory covers 500,000 square meters and will employ approximately 750 people and an initial annual production capacity of approximately 540,000 tires. The output of the Yanzhou plant is destined for the Chinese, Southeast Asian and Australian markets.

　　Pirelli owns 60 percent of the venture while the Chinese partner takes the remainder.

　　Pirelli's goal is to capture 3 percent of the Chinese radial truck tire market by the end of 2006, and aims to grow at twice the speed of the market.

　　Pirelli is the first international tire maker to open a plant in Shandong Province, where over 35% of the market's production capacity is located.

　　China's growing auto market triggers more demand for tires. China is now the world's third-biggest auto market after the United States and Japan.

　　Foreign tire firms eye the China market as a growth engine. The world's top 11 tire makers, including Michelin, Goodyear and Bridgestone, have all established their presence in China.