Pirelli to manufacture tyres in Saudi Arabia - Grand Prix 247

Italy’s Pirelli has signed a joint venture with Saudi Arabia’s Public Investment Fund (PIF) to build a tyre manufacturing facility in the country, the two groups said on Thursday.

The deal – for a total investment of $550-Million – will make Pirelli the first tier 1 tyre maker to directly source production in Saudi Arabia, which is trying to diversify its economy away from oil.

PIF, Saudi Arabia’s $700-Billion sovereign wealth fund, will hold a 75% stake in the new JV, with Pirelli holding the remaining 25% and providing the technical and commercial support for the development of the project, the two groups said.

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.

It will manufacture high-quality tyres for passenger vehicles under the Pirelli brand, as well as market tires under a new local brand mainly aimed at the domestic and regional market, it added.

Founded in 1872, Pirelli now specializes in high-end tyres for premium carmakers like Ferrari, Porsche and BMW and is the sole supplier for Formula 1 cars.

Saudi Arabia is boosting its manufacturing capabilities in the automobile sector and aims to produce more than 300,000 cars annually by 2030.

Earlier this month PIF struck a deal with South Korea’s Hyundai Motor Group to build a car plant in Saudi Arabia.

Reports back in January claimed that the PIF was targeting to buy Formula 1 from commercial rights holders Liberty Media and planning to pay up to $20-Billion.

That prompted FIA President Mohammed Ben Sulayem to warn from an inflated price tag of F1, which didn’t go down well with Liberty who saw that as interference in the commercial side of the sport, an area that is not under the FIA jurisdiction.

Consequently Liberty Media sent the FIA a legal letter objecting on Ben Sulayem’s comments and labeling them as “unacceptable”.

The relationship between Formula 1 commercial rights holders and the FIA are governed by an agreement signed back in 2000 by previous FIA President, the late Max Mosley and former F1 supremo Bernie Ecclestone.(Reporting by Giulia Segreti, Additional reporting by GrandPrix247)

Adblock test (Why?)

Read Again https://news.google.com/rss/articles/CBMiVWh0dHBzOi8vd3d3LmdyYW5kcHJpeDI0Ny5jb20vMjAyMy8xMC8yNy9waXJlbGxpLXRvLW1hbnVmYWN0dXJlLXR5cmVzLWluLXNhdWRpLWFyYWJpYS_SAVlodHRwczovL3d3dy5ncmFuZHByaXgyNDcuY29tLzIwMjMvMTAvMjcvcGlyZWxsaS10by1tYW51ZmFjdHVyZS10eXJlcy1pbi1zYXVkaS1hcmFiaWEvYW1wLw?oc=5

Bagikan Berita Ini