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SABIC says project aims to manufacture 3.5 million tires annually
Saudi Basic Industries Corp (SABIC) signed an agreement with the joint venture between the Public Investment Fund (PIF) and Pirelli Tyre S.P.A. (Pirelli) to supply raw materials, including butadiene rubber and carbon black.
In a statement, the company stated that the project aims to manufacture 3.5 million tires annually, noting that the agreement was signed on the first day of the PIF Private Sector Forum 2026.
The agreement is the first of its kind to supply raw materials for domestic tire manufacturing in Saudi Arabia, SABIC said, adding that tire production will take place at the King Salman Automotive Cluster in King Abdullah Economic City.
Moreover, a dedicated Saudi brand will be launched to supply tires for passenger vehicles and automotive manufacturers in the region, in addition to producing Pirelli-branded tires.
According to Argaam’s data, PIF and Pirelli announced in 2023 the signing of a joint venture (JV) agreement to build a tire manufacturing facility in Saudi Arabia. PIF holds a 75% stake in the new JV and Pirelli owns 25%.
Pirelli acts as a strategic technology partner to support the development of the project by providing technical and commercial assistance.
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