According to insiders, Aeolus Tire Co., Ltd. has signed an agreement with Pirelli Group on patents and know-how. In the future, Aeolus will possess the exclusivity of Pirelli technology and with this expand its industrial tire products.
 
"China Rubber" learned that the First Amendment to the Patent and Proprietary Technology Licensing and Technical Assistance Agreement signed this time, Pirelli granted Aeolus Shares access to and use of its patents and know-how to enhance the latter's industrial tires production. Aeolus will produce industrial tires that meet quality standards in the agreed production plants.

In addition, Pirelli shall not grant the right to use patents and know-how to any other Chinese tire companies headquartered in China from the date of the agreement's effective date until January 2024, and Pirelli's related companies will not grant the right to use patents and technologies of industrial tires to any enterprises that compete with Aeolus.

At the same time, the agreement also clarifies the license fee that Aeolus Shares should pay to Pirelli. If the company does not own more than 50% of Pirelli Industrial (PTG) during the period from 2019 to 2023, the latter will need to pay the higher of the 1% of the annual net sales of Aeolus or 7 million euros (up to a maximum of 22 million euros).

If Aeolus shares already owns more than 50% of PTG's equity, they will pay the higher of the annual net sales of 1% or 17 million euros that deducting the PTG paid license fee (up to a maximum of 49 million euros).