Mexico has gone to tires — and that’s good news for both the economy of the country and the expanding needs of Pirelli.
The Italian manufacturer is well positioned in Mexico already. It manufactured an estimated 3 million tires in Silao, in the state of Guanajuato in 2015, according to the tire maker’s press release.
But Pirelli is now set to build another car tire place in Mexico. The new facility will cost an estimated $200 million and will have the capability of manufacturing 2.5 million tires a year by 2019.
The new plant, also located in Silao, will push Pirelli’s investment in the two plants to more than $600 million. The new plant, according to the tire maker, will begin production in 2017 at a yet-to-be announced date.
The Pirelli plant in Mexico, which covers 140,000 square meters, will complement the facility the company has had in Rome, Georgia, since 2002.
Pirelli’s prominence keeps growing, particularly in Mexico. In 2015, premium sales in the region grew by 24.3 percent. Overall, last year the area registered sales of about $973 million — an increase of 21.7 percent and representing 13.7 percent of total group sales, up from 11.8 percent the prior year.
Production capacity will reach 7.5 million pieces by the end of 2018. The 1,400-strong workforce is forecast to increase to more than 1,800.
Pirelli & C. SpA, based in Milan, Italy, was acquired in 2015 by ChemChina. It’s the world’s fifth-largest tire manufacturer behind Bridgestone, Michelin, Continental and Goodyear.
Pirelli has sponsored sport competitions since 1907 and is the exclusive tire supplier for the Formula One Championship through the 2016 season and for the FIM World Superbike Championship.
Article Last Updated: April 26, 2016.
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