Pirelli plans to make some further investment in its Mexican operations, announcing it will build a new tire plant in the city of Silao.
The Milan-based company already has a plant in Silao, a city in the west-central part of the state of Guanajuato in Mexico, which was opened in 2012 to focus on the premium segment, making performance tires for cars and SUVs locally and in the entire Nafta region. Pirelli now plans to make a further 200-million-dollar investment in a new factory on the same site in Silao, in addition to the existing car tire facility. The new investment will begin in 2016, with production scheduled to start in 2017, and it will be in addition to the 360 million dollars put to date and the 50 million already earmarked for the period 2016-2017. At the end of 2018, Pirelli’s total expenditure with boosting its operations in Mexico will be above 600 million dollars.
The site in Silo, with an annual output at the end of 2015 of around 3 million tires, will increase the production capacity to 7.5 million pieces by the end of 2018. To support the upcoming speedy pace, Pirelli will hire some extra 400 workers, thus growing the total staff to 1,800 employees. In 2015, Pirelli’s premium tires sales in Nafta region grew by 24.3 percent, generating 861 million euros and representing nearly 14 percent of the group’s total sales.