The Strategist

EC allows Pirelli and PIF to set up tires production in Saudi Arabia



02/02/2024 - 02:38



The Public Investment Fund (PIF) of Saudi Arabia and Pirelli of Italy have been granted permission by the European Commission to establish a joint venture specializing in tires within the kingdom.



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"Considering that the joint venture does not now operate in or intend to operate in the European Economic Area, the Commission has determined that the proposed acquisition would not give rise to competition concerns. The transaction has been reviewed using a streamlined process," according to a statement from the EC.

Products from the tire plant will be sold in the Middle East and North Africa (MENA) area and other Gulf Cooperation Council (GCC) nations.

In October 2023, PIF and Pirelli secured a contract to open a 3.5 million tire per year plant in Saudi Arabia. The plant is expected to begin operations in 2026 and will require a about $550 million investment. Pirelli has a 25% stake in the joint venture, with PIF holding a 75% share. Pirelli is serving as a strategic technical partner.

source: bloomberg.com




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