Key facts
- Pirelli plans to invest between $1 billion and $1.2 billion in the U.S. over multiple years.
- The investment will expand production capacity, including for 'Cyber Tyres'.
- The plan requires approval at an upcoming Pirelli board meeting.
- Pirelli will start producing Cyber Tyres at its Rome, Georgia plant.
- The Italian government previously intervened to limit the influence of Chinese investor Sinochem.
Italian tyremaker Pirelli announced plans for a significant investment in the United States, earmarking between $1 billion and $1.2 billion over multiple years to expand its production capacity. This expansion includes the manufacturing of its advanced 'Cyber Tyres,' which embed sensors to transmit real-time data to vehicles.
The investment plan is set to be presented for approval at an upcoming board meeting. Pirelli had previously stated its intention to begin producing Cyber Tyres at its U.S. facility located in Rome, Georgia.
This strategic move follows intervention by the Italian government, which acted to limit the influence of Pirelli's Chinese investor, Sinochem. The government's actions were prompted by concerns over potential risks to the premium tyremaker's business objectives in the U.S.
In line with the government's restrictions, Pirelli's shareholders recently appointed a new board of directors, with a majority of Italian representatives from Camfin, the investment vehicle of businessman Marco Tronchetti Provera. Camfin holds a 26.2% stake in Pirelli, while Sinochem, with a 34.1% stake, secured representation for only three members on the 15-person board.
During the board meeting, Andrea Casaluci was confirmed as CEO, and Marco Tronchetti Provera, who previously served as executive vice chairman for three years, was appointed executive chairman.