Chemical firm Saudi Basic Industries Corporation (SABIC) recently signed an agreement with the joint venture, Mena Tyre Company, established between the Public Investment Fund (PIF) and Italian tyre maker Pirelli, for the supply of polybutadiene rubber and carbon black to achieve 3.5 million tyres/year – a major milestone toward empowering and advancing local content in Saudi Arabia.
The agreement was signed recently during the PIF Private Sector Forum 2026 in Riyadh and it is considered first of its kind as it supplies raw materials for producing car tyres locally in Saudi Arabia in a plant located in the King Salman Automotive Cluster at King Abdullah Economic City.
In this regard, a bespoke Saudi trademark will be launched for providing passenger vehicles and car manufacturers in the region with tyres, in addition to Pirelli tyres.
Meanwhile, the construction contract has also been awarded for the new tyre plant to Saudi Amana to undertake this ambitious venture.
The construction timeline is ambitious, with production slated to begin in 2026. This move is significant not only for Pirelli but also for the local economy, offering employment opportunities and enhancing skills in the construction industry.
PIF holds a 75% stake in the new JV with Pirelli holding the remaining 25% and acting as a strategic technology partner to support the development of the project by providing technical and commercial assistance.