Hevea-Tec

History

2023: Pirelli bought Hevea-Tec

On July 4, 2023, Italian company Pirelli, one of the world's largest tire manufacturers, announced an agreement to acquire Hevea-Tec, Brazil's largest independent natural rubber processor.

The official statement says that the value of the transaction is approximately €21 million. It is planned to complete the merger at the end of 2023 after obtaining the necessary permits from regulators, in particular, from the antimonopoly department. The acquisition of Hevea-Tec will not affect the achievement of the goal of a net financial position (the aggregate amount of the company's debts minus money and cash equivalents) Pirelli for 2023: this figure is estimated to be €2.35 billion.

Hevea-Tec Rubber Processing Plant

It is noted that the deal will contribute to the launch of innovative projects for the production of natural rubber, aimed at increasing the use of non-fossil materials in tires in accordance with Pirelli's goals. In terms of sustainable development, the acquisition of Hevea-Tec will allow Pirelli to improve control over the natural rubber supply chain, as well as help reduce carbon dioxide emissions into the atmosphere through local product supplies. In particular, Pirelli will be able to increase shipments of natural rubber in Latin America, ensuring the continuity of supplies in the region.

It is also said that Pirelli already has plans to increase production at Hevea-Tec facilities. In addition, a new FSC (Forest Stewardship Council) certification will be organized. The existence of this document is a confirmation that products come from territories in which forest use is carried out in accordance with the principles and criteria of the Forest Board of Trustees.^[1]

Notes