The Pirelli Tyre core business in 2014 accounts for 98% of Group purchases (vs 97% in 2013).
The following tables show the value of purchases made by Pirelli Tyre and the percentage of the relative suppliers divided by geographical area. This data reveals that the value of purchases in OECD areas is approximately the same as the value of purchases in non-OECD areas, while the number of suppliers is slightly higher in OECD areas.
77% of suppliers (vs 78% in 2013) – excluding raw material suppliers - operate locally with respect to the supplied Pirelli Tyre affiliates, in accordance with a “local for local” supply logic.
Percentage Value of Pirelli Tyre Purchasing by Geographical Area
Percentage of Pirelli Tyre Suppliers by Geographical Area
The following table shows a breakdown into percentages of the value of Pirelli Tyre purchases by type.
It is clear that the most relevant and significant purchase category concerns raw materials with a weight equal to 54% of the total, down from the previous year due to lower commodity prices, particularly natural rubber.
Percentage Value of Pirelli Tyre Purchasing by Type
With reference to the percentages of Pirelli Tyre suppliers by type and number as at the following table, already from 2010 the consumables and services suppliers categorisation criteria had been defined. The sum of the number of operators in the two categories remains in excess of 80% of the total, even though the incidence on total purchases is significantly lower than, for example, that of raw material purchases. The fragmentation of consumables and services suppliers is clearly visible compared to the substantial concentration of raw materials purchases over a small number of operators.
Percentage of di Pirelli Tyre Suppliers by type of purchase
Finally, the following table outlines the percentage composition to value of the mix of raw materials purchased by Pirelli Tyre in 2014, 2013 and 2012. Compared to 2013, in 2014 there was a decrease of the weight of natural rubber due to the reduction in the price of the commodity. The volume of raw materials utilised for the production of tyres in 2014 amounted to approximately one million tonnes, of which approximately 5% is derived from recycled materials, in line with the previous year.
Purchased Raw Materials Purchased by Pirelli Tyre Mix (by Value)