By Ellis Butcher

Last updated at 11:33, Saturday, 11 August 2012

Welcome news of a £9m-plus cash injection into the Carlisle Pirelli tyre plant has boosted the city’s economic mood.

Business leaders and community representatives have offered praise and collective sighs of relief as the announcement puts the factory’s future firmly on track.

Six years ago the site looked in danger of skidding off road due to job losses brought about by a fall in demand across its key product, the up-market tyre sector.

This week the Milan-based Pirelli Group confirmed that of the £20m being invested into its UK-wide operations, the lion’s share – £11.4m – will go direct to the Dalston Road site.

The sum could eventually break the £13m barrier for Carlisle alone.

It’ll be spent on machinery to increase productivity. Decisions still need to be made about possible new jobs, but crucially it safeguards staff, increases morale and job security during the downturn and protects those involved in its supply chain.

Rob Johnston, chief executive of Cumbria Chamber of Commerce, in conjunction with the Cumbria Local Enterprise Partnership (LEP) played a key role in unlocking the Italian investment.

The LEP ratified and submitted the Government funding bid written in Carlisle which helped Pirelli win £2m from a regional growth funding cash pot, which then released the money from Italy.

Mr Johnston said: “What is significant about this news is that it enables the next generation of ecologically sound tyres to be made, and by getting this investment into Carlisle it secures the future of the factory.”

Meanwhile, John Treeby, who leads the Carlisle and Penrith branch of the Federation of Small Businesses, and owns Tarn Road Nurseries at Brampton, said the announcement in the current climate could easily have been redundancies.

“Any injection of cash is welcome,” said Mr Treeby, “if it’s going to keep jobs here. Even if Pirelli only take on 10 people it’s 10 people off the dole and 10 people spending money, invariably in the supermarkets but even the supermarkets employ people.”

Carlisle MP John Stevenson added: “What we want to see around Carlisle is investment in all our businesses. Jobs being safeguarded and new businesses setting up and creating jobs.”

Councillor Tony Markley, the main economic portfolio holder for Cumbria, added: “The county council was instrumental in working with the Local Enterprise Partnership to help Pirelli secure their bid to the regional growth fund. I’m delighted that we’re now at the point that the company is firming up its expansion and investment plans.”

First published at 10:53, Saturday, 11 August 2012
Published by http://www.newsandstar.co.uk