Pirelli Tire North America Inc. held the groundbreaking ceremony for its new production plant in Silao, Mexico.
The tire maker says this investment confirms the importance of the NAFTA region among Pirelli’s international operations.
"The new plant strengthens Pirelli’s position in Mexico and its growth at a worldwide level, and will increase its market share in the tire industry, by meeting the requirements of export and domestic customers," the company says.
Miguel Marquez Marquez, governor of Guanajuato; Pierluigi Dinelli, CEO of Pirelli NAFTA Region; Tom Gravalos, CEO and managing director of Pirelli Mexico; and Antonio Morales Maciel, mayor of Silao, Guanajuato, attended the June 2, 2016, ceremony.
Production in the new plant is scheduled to begin in the second quarter of 2017.
Like the existing plant next door, this new facility will continue to focus on the premium tire segment, with production of high performance and ultra-high performance tires for cars and SUVs for the NAFTA region markets.
The new investment of $200 million is in addition to the $400 million already invested at the site. At the end of 2015 production was about 3 million tires, and annual capacity is increasing to 5 million tires.
Thanks to the new investment, which will allow for the production of about 2.5 million tires, Silao’s total production capacity will reach 7.5 million tires by the end of 2018.
Pirelli says the new plant "confirms the importance of Mexico among Pirelli’s international operations, also thanks to its strategic position. In recent years Mexico has been an ideal base to significantly develop Pirelli’s rapidly growing position in the NAFTA region, a market which has been confirmed as one of the most promising for the success of the premium strategy."
