Pirelli plans U.S. capacity expansion with up to $1.2 billion investment

Traders Union
All News
Financial News
Pirelli US expansion plan

Highlights

Pirelli plans to invest up to $1.2 billion to expand U.S. production capacity, pending board approval at an upcoming meeting.
The company will produce Cyber Tyres at its Rome, Georgia plant, featuring real-time sensor data technology for vehicles.
Following Italian government intervention, Camfin now dominates Pirelli's board while Sinochem retains a minority presence, impacting U.S. strategy execution.

Investment plan and board review

Pirelli said on Tuesday that its new board was informed of the U.S. investment plan, which is due to be submitted for approval at an upcoming meeting, as reported by Reuters.

The Italian tyremaker said the programme is designed to raise production capacity in the U.S. In May, the company said it would start producing Cyber Tyres at its plant in Rome, Georgia.

Cyber Tyre technology combines sensors embedded in tyres with software that can transmit real-time data to vehicles.

Governance changes shape U.S. strategy

The announcement comes after the Italian government intervened to curb the powers of Pirelli’s Chinese investor Sinochem, citing risks to the premium tyremaker’s business ambitions in the U.S.

Under the restrictions set by Rome, Pirelli shareholders last week appointed a new board dominated by Italian investor Camfin. Camfin, the vehicle of Marco Tronchetti Provera, holds a 26.2% stake in the group, while Sinochem, which owns 34.1%, secured the election of only three representatives to Pirelli’s 15-member board.

Pirelli’s board on Tuesday also confirmed Andrea Casaluci as chief executive officer, while Tronchetti Provera was appointed executive chairman after serving as executive vice chairman for the previous three years.

Our earlier article on congressional scrutiny of U.S.-based tax-exempt groups linked to Neville Roy Singham covered how the House Ways and Means Committee and the Justice Department were examining whether certain nonprofits misused tax-exempt status while advancing foreign political interests in the U.S. We noted that the probe focused on subpoenas, funding links, and potential compliance risks for organizations accused of disseminating Chinese Communist Party-aligned messaging.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.

Did you like the article?

Pirelli plans U.S. capacity expansion with up to $1.2 billion investment

Highlights

Investment plan and board review

Governance changes shape U.S. strategy

Editor's Picks for You