23 Feb 2026
Saudi materials group to supply rubber, carbon black for $550m tire production plant
Riyadh – Saudi Basic Industries Corp. (Sabic) has signed a deal with Pirelli and its Saudi joint venture partner Public Investment Fund (PIF) for the supply of raw materials for a greenfield tire production facility, currently under construction in western Saudi.
As part of the deal, Sabic will provide polybutadiene rubber and carbon black to the project, which will have a nameplate capacity to produce 3.5 million passenger car tires per year.
The agreement, said Sabic in a 15 Feb statement, is “first of its kind” as it supplies raw materials for producing car tires locally in the kingdom.
Pirelli and PIF launched the $550 (€470 million) tire project in late 2023, with the aim to start production in 2026.
At the time, Pirelli said the new factory is being constructed in anticipation of Saudi Arabia becoming “a global automotive manufacturing hub” by 2030.
PIF holds a 75% stake in the venture, with Pirelli holding the remaining 25% and acting as strategic technology partner.
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