PIF, Pirelli to build $550mln tire facility in Saudi Arabia

Saudi Public Investment Fund (PIF) and Italy’s Pirelli Tyre, a leading global tire manufacturer, have announced on Thursday the signing of a $500 million joint venture agreement to build a tire manufacturing facility in the Kingdom.

The project will not impact Pirelli’s deleveraging targets to 2025, they added. The plant is expected to start producing in 2026 and is set to reach a production capacity of 3.5 million units.

PIF will hold a 75 percent stake in the new JV, with Pirelli holding the remaining 25 percent and providing the technical and commercial support for the development of the project, the two groups said.