- Saudi Arabia’s Public Investment Fund and Italian tyre manufacturer Pirelli have formed a joint venture to build a tyre manufacturing plant in the Kingdom, with an estimated investment of about $550 million. The PIF will hold a 75% stake in the JV, with Pirelli holding the remainder.
- The tyre plant, which is set to commence operations in 2026, will manufacture tyres for passenger vehicles under the Pirelli brand. It will also produce tyres under a new local brand aimed at the domestic and regional markets. Overall, the project is expected to have an annual production capacity of 3.5 million units and will have a “neutral” impact on Pirelli’s deleveraging targets to 2025.
Why it matters
Saudi Arabia, the Arab world's largest economy, is focused on building its domestic EV market as part of its Vision 2030 strategy to diversify its economy away from oil. This collaboration marks another pivotal milestone in their journey to diversify the economy, enhance sustainability and localize manufacturing capabilities in Saudi Arabia.