Pirelli set to break ground on Saudi tire plant

Milan, Italy – Pirelli & C. SpA expects to break ground on a €480-million joint venture tire project in Saudi Arabia “in the following weeks,” according to CEO Andrea Casaluci.

Speaking during a 25 Feb earnings call, Casaluci said the project with Saudi Public Investment Fund (PIF) is “proceeding as expected in the initial plan.”

“We have very positive feedback from the first step in the construction of the factory,” said Casaluci.

The first tire production, he added, is expected in the second half of 2027, "most probably third quarter."

Pirelli disclosed plans to the build the tire factory in the King Abdullah Economic City (KAEC), in eastern Saudi Arabia, in 2023.

At the time, the tire maker said the plant would have a capacity to produce 3.5 million units of passenger car tires per annum, some under the Pirelli brand.

Initially set for operation in 2026, the factory will also manufacture and market tires under a new local brand targeting the domestic and regional markets.