Tyre maker Pirelli has priced its initial public offering (IPO) at 6.50 euros (£5.74) per share, valuing the company at 6.5bn euros (£5.7bn), at the lower end of the expected range

The Milan-based company, which has a factory in Carlisle, was taken over two years ago by Chinese owners and is set to resume trading in Milan on Thursday.

The public offering is expected to raise about 2.3bn euros (more than £2bn).

Pirelli de-listed when state-owned China National Chemical Corp took a 65 per cent stake in the firm. The Chinese have agreed to reduce their share to below 50 per cent to launch the IPO.

Pirelli's Carlisle plant is one of two manufacturing sites in the UK, with the other is in Burton-on-Trent. It opened in 1969 and its tyres are supplied to Jaguar/Land Rover, Volkswagen/Audi, Porsche, BMW, Mercedes, Volvo and Maserati.

Earlier this year plans to expand the site in Dalston Road where approved by Carlisle City Council, allowing the company to “cure tyres” – a process which gives the product its final shape.

Pirelli said the one-storey development would create a small number of direct jobs, and help secure the 850 existing jobs and 3,000 supplier jobs at the site.