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June 06, 2016 02:00 AM

Pirelli breaks ground on Mexican expansion

Tire Business Report
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    Tomas Gravalos, Pirelli Mexico CEO & managing director, and Pierluigi Dinelli, Pirelli NAFTA Region CEO, at the June 2 ground-breaking for the $200 million expansion project.

    SILAO, Mexico—Pirelli Tyre S.p.A. has broken ground on a $200 million expansion of tire capacity at its 4-year-old car and light truck tire plant in Silao, in Mexico's Guanajuato state.

    Production at the plant is scheduled to begin in the second quarter of 2017, Pirelli said, with an initial annual capacity of 2.5 million tires.

    Miguel Marquez Marquez, governor of Guanajuato, Pierluigi Dinelli, Pirelli NAFTA Region CEO, Tomas Gravalos, Pirelli Mexico CEO & Managing Director, and Antonio Morales Maciel, Mayor of Silao, were present at the ground-breaking ceremony June 2.

    Pirelli said the new plant strengthens Pirelli's position in Mexico and its growth at a worldwide level. It will increase its market share by meeting the requirements of export and domestic customers.

    The expansion will bolster the Silao plant's focus on the premium segment, Pirelli said, with production of high- and ultra-high-performance tires for cars and SUVs, for the NAFTA region markets.

    Pirelli's first plant at Silao covers more than 1.4 million square feet with an annual output of around 3 million tires last year and plans to grow to 5 million tires.

    With this new investment, the workforce will be increased by 400 employees to more than 1,800, not including 400 ancillary workers.

    Pirelli said it also plans to provide technical training, through the Piero Pirelli Institute, to the entire automotive industry in the Guanajuato area.

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