Italian tire manufacturer Pirelli has signed a joint venture with the Public Investment Fund (PIF) to build a tire manufacturing facility in Saudi Arabia. Worth a total investment of $550 million, this project will make Pirelli the first tier 1 tire maker to directly source production in the Kingdom.
The PIF will hold a 75% stake in the new JV, with Pirelli holding the remaining 25% and providing the technical and commercial support for the development of the project. The plant is expected to start producing in 2026 and is set to reach a production capacity of 3.5 million units.
The PIF will hold a 75% stake in the new JV
The new plant will manufacture high-quality tires for passenger vehicles under the Pirelli brand, in addition to marketing tires under a new local brand mainly aimed at the domestic and regional markets.
Saudi Arabia is boosting its manufacturing capabilities in the automobile sector and aims to produce more than 300,000 cars annually by 2030.
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