Pirelli to invest $200M in Mexico

MEXICO CITY (April 20, 2016) – Pirelli Tyre S.p.A. is committing $200 million over the coming 18 months to expand its four-year-old car and light truck tire plant in Silao, Mexico, by 50 percent to 7.5 million units.

This expenditure will bring Pirelli's investment in the Silao factory to $610 million by the time the added capacity is on stream by late 2018, Pirelli said. The plant is focused on high- and ultra-high-performance tires for cars, SUVs and light trucks.

Employment is expected to grow to more than 1,800 from 1,400 currently, Pirelli said.

The announcement coincided with a state visit to Mexico by Italian Prime Minister Matteo Renzi, who joined with Mexican President Enrique Pena Nieto during celebrations at the Palacio Nacional.

Pirelli did not say whether the expansion means a physical expansion of the plant, which covers more than 1.4 million square feet.

Pirelli said this new investment confirms the importance of Mexico among Pirelli's international operations, especially in the NAFTA market, where premium sales grew 24 percent in the past year.