Pirelli ramps up Mexican tire production with new plant

Pirelli’s Mexican plant. | © Pirelli

Pirelli ramps up Mexican tire production with new plant

Pirelli will build a $200 million new car tire plant in Mexico, boosting its local production by 2.5 million tires a year by 2019.

The Italian manufacturer already has a car tire plant in Silao, in the state of Guanajuato, which produced three million tires in 2015. That factory is set to increase output to five million tires a year as production ramps up at the “Puerto Interior” industrial hub. The plant has been focused on the premium tire segment, producing high performance and ultra high performance tires for cars and SUVs, for the local and all North American Free Trade Agreement (NAFTA) area markets.

Last week’s announcement takes Pirelli’s investment in the two Silao plants to more than $600 million over the past four years. The new plant is expected to start production next year.

Pirelli tire

The Pirelli P-Zero is a popular UHP tire.

The company said the new investment confirms the importance of Mexico to Pirelli’s international operations, especially the NAFTA market where the premium strategy is showing “promising” signs of success.

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.

Pirelli’s production hub in Silao covers 140,000 square meters. Production capacity will reach 7.5 million pieces by the end of 2018. The 1,400-strong workforce is forecast to grow to more than 1,800.

The Mexican plant supports the production hub Pirelli has had since 2002 in Rome, Georgia.

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