Pirelli & Cie SpA will invest 114 million euros — about $112.6 million as of Oct. 31 — to expand its consumer tire plant in Silao, Mexico. The construction will increase annual production capacity by 1.3 million tires by 2025.
The Mexican site is an important piece of Pirelli's strategy to bring high value tires to all of North America, including the U.S. The plant currently has a capacity of 7.2 million tires, and it will increase to 8.5 million tires once construction is complete in three years.
The plant manufactures high performance and ultra-high performance tires for passenger cars, electric vehicles, SUVs and light trucks. The site will also be home to a previously-announced research and development center. Pirelli says it invests about 6% of its revenue from high value tires into research and development. The company has 13 existing R&D centers around the world.
Pirelli announced the expansion while celebrating the 10th anniversary of the plant's founding. The company will add 16,000 square meters to the plant and add 400 new jobs for a total of 3,200 employees when fully operational.
“The Silao plant has made an important contribution to the success of Pirelli's global strategy of becoming the leader in the high value segment," said Marco Tronchetti Provera, executive vice chairman and CEO of Pirelli. "When we chose Silao, and the Guanajuato region, as the location for a new plant 10 years ago, our expectations were very high. Today I am happy to say that we have achieved our goals and that the factory and the people who work there have exceeded our expectations. In fact, the Silao plant is one of the most technologically advanced in the Group and will soon host a new Pirelli R&D Centre. As we have for 10 years, we continue to strongly believe in Silao and its people."
Claudio Zanardo, president and CEO of Pirelli North America, said, “Mexico is a strategic area for Pirelli for all its activities in North and Central America and with this investment we will further increase Pirelli's technological and industrial competitiveness. I wish to thank all the people and the institutions, who over these years have contributed to the growth of the Silao factory.
“In Guanajuato we are very proud to have Pirelli in our state, and to celebrate its tenth anniversary of the Silao plant, as well as the 150th anniversary of its foundation worldwide."
As part of the 10th anniversary celebration, Pirelli Mexico has published a book, "Pirelli, the culture of innovation" to mark the company's founding and growth at the Silao factory.
