Supplier of raw materials for Saudi Pirelli project named

In the Middle East, the joint project of Pirelli and the Saudi Arabian Sovereign Fund (PIF) continues to be implemented, aimed at creating a new tire production in the country worth $550 million, and the petrochemical company Saudi Basic Industries Corp. (SABIC) has announced that it will supply the enterprise with raw materials such as butadiene rubber and technical carbon.

The plant in the King Salman Automotive Cluster on the territory of King Abdullah Economic City may become the first tire production enterprise in the country, and SABIC notes that the signed agreement is unprecedented in the emerging Saudi tire industry.

The project launch was announced in 2023, and production is scheduled to start in 2026. The joint venture (75% of shares owned by PIF, 25% by Pirelli) will produce passenger tires under both the Italian brand and a new brand. The plant's projected capacity is 3.5 million tires per year. Pirelli acts as a strategic technological partner, which will also provide commercial support.

In Saudi Arabia, two more projects for the creation of tire plants have been launched earlier, which are being implemented by Kingdom Tyres and Black Arrow Tire Company (Blatco), the latter of which is cooperating with Kumho.

Photo: SABIC