Pirelli Plans Up to $1.2 Billion U.S. Investment, Expanding Focus on Rome Plant
Tire manufacturer Pirelli is planning to invest between $1 billion and $1.2 billion in its U.S. operations over the coming years, a move expected to further strengthen production at its Rome manufacturing facility.
The Italian company announced that its newly appointed board of directors had been informed of the multi-year investment plan, which will be presented for formal approval at an upcoming board meeting.
The investment is aimed at increasing Pirelli’s manufacturing capacity in the United States, including expanding production of its innovative Cyber Tyres.
In May, Pirelli announced that Cyber Tyres would be produced at its Rome, Georgia, plant, positioning the northwest Georgia facility at the forefront of the company’s next generation of tire technology.
Cyber Tyre technology integrates sensors embedded inside the tire with software capable of transmitting real-time data to vehicles. The system can monitor information such as tire pressure, temperature and road conditions, providing drivers and vehicle systems with enhanced safety and performance data.
The planned investment underscores the strategic importance of Pirelli’s U.S. manufacturing operations as demand grows for advanced tire technologies.
The announcement also comes amid significant changes to the company’s corporate governance.
Earlier this year, the Italian government stepped in to limit the influence of Pirelli’s largest shareholder, Chinese state-owned chemical company Sinochem, citing concerns that its ownership structure could affect the tire maker’s business opportunities in the United States.
Following those restrictions, shareholders approved a new board of directors last week that is controlled by Italian investor Camfin, the investment company led by longtime Pirelli executive Marco Tronchetti Provera.
Camfin owns a 26.2% stake in Pirelli, while Sinochem remains the company’s largest shareholder with a 34.1% stake. However, under the new board structure, Sinochem secured just three seats on the 15-member board.
On Tuesday, the board confirmed Andrea Casaluci as Pirelli’s chief executive officer and appointed Tronchetti Provera as executive chairman after he previously served as executive vice chairman.
For Rome, where Pirelli has operated one of its largest North American manufacturing facilities for decades, the investment signals continued confidence in the plant’s future. The company’s decision earlier this year to manufacture Cyber Tyres in Rome places the local facility at the center of Pirelli’s U.S. growth strategy and positions it to play a key role as the automotive industry increasingly adopts connected vehicle technologies.
