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September 01, 2021 11:18 AM

Pirelli to boost capacity at Mexican tire plant

Tire Business Staff
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    Pirelli has disclosed plans to boost capacity at its tire manufacturing complex in Silao, Mexico.

    MILAN, Italy — Pirelli & C. S.p.A. has disclosed plans to boost capacity at its tire manufacturing complex in Silao, Mexico, by 9% to over 7.2 million units annually.

    Pirelli is budgeting $36 million for the project, which it said is in line with its Industrial Plan released in 2020.

    The company disclosed the plans during a visit to Pirelli headquarters in Milan by Diego Sinhue Rodríguez Vallejo, governor of the Mexican state of Guanajuato, where the company's tire plant is located.

    Marco Tronchetti Provera, executive vice chairman and CEO of Pirelli, called Mexico a "strategic area for Pirelli for all its activities in North and Central America. The visit of Governor Rodrìguez Vallejo is a testament to the close ties between the company and the state of Guanajuato, one of Mexico's most economically advanced areas, where we intend to continue to invest for further growth."

    Pirelli

    Pirelli CEO Marco Tronchetti Provera (left) and Rodriguez Vallejo, governor of the Mexican state of Guanajuato met recently at the tire maker’s headquarters in Milan.

    Inaugurated in 2012 and doubled in size in 2016, Pirelli's plant in Silao produces high- and ultra-high-performance tires for cars and SUVs for the domestic and U.S./Canada markets. Employment there stands at 2,700.

    During his visit to Milan, Mr. Vallejo visited Pirelli's research and development center and the Fondazione Pirelli. Also participating in the visit were Luigi De Chiara, the Italian Ambassador in Mexico, and Carlos Garcia De Alba, the Mexican Ambassador in Italy.

    In prepared comments, Mr. Vallejo said: "In Guanajuato we are pleased to have Pirelli as one of our main employers. They have provided great opportunities for several families in our state to have a better quality of life and to achieve their personal goals.

    "We appreciate your business with Guanajuato and we will continue working together to make of our region the most dynamic in all of the continent. This announcement contributes to the development and stability of our people who are the real greatness of Mexico and our most valued asset."

    According to Tire Business' analysis of available trade data, passenger and light truck tire exports from Mexico to the U.S. doubled in the first six months of 2021 over 2020 and are measurably more than in 2019.

    As such, Mexico is now the No. 2 source of passenger tire imports into the U.S. and No. 4 source of light truck tire imports. At the pace shown during the January-June period, Mexico is on pace to supply over 20 million passenger and 3 million light truck tires to the U.S. this year.

    Besides Pirelli, Bridgestone Corp., Cooper Tire, Goodyear, Group Michelin and India's JK Tyre & Industries have tire factories in Mexico.

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