Pirelli & C. S.p.A. has a handful of expansion projects in the works at its operations in Argentina and Mexico.
In Argentina, Pirelli added motorcycle tire production capacity at its 60-year-old plant in Merlo, becoming the first local manufacturer of this segment in the country. Pirelli is investing $10 million in the plant, about half of that earmarked for the motorcycle tire capacity.
The expansion project is in line with Pirelli's industrial plan unveiled in 2021, calling for production of two-wheeler tires to grow to 450,000 units per year.
In Mexico, Pirelli budgeted $36 million to boost capacity at its manufacturing complex in Silao, Mexico, by 9 percent to more than 7.2 million units annually.
At the same time, the company disclosed plans to build a technology and digitalization hub for production at the Silao plant in a bid to implement Industry 4.0 principles and strengthen the "innovation ecosystem" at the nine-year-old facility.
Pirelli has budgeted $15 million for the project, which will be housed in a 71,900-sq.-ft. expansion of the factory premises.
The heart of the new investment will be the creation of Pirelli's first research and development center in Mexico, which will incorporate cutting-edge technologies for the production of tires designed for future mobility.
Qingdao Sentury Tire Co. has earmarked a budget of $590 million for a passenger and light truck tire plant in Galicia, northwest Spain, as part of its major global growth strategy.
Sentury, which goes to market with the Delinte, Groundspeed, Landsail and Sentury brands, is considered the world's No. 39 tire maker, based on fiscal 2021 sales of $811 million.
The plant, with a rated capacity of 12 million high-performance radial tires a year, is scheduled to be completed in two phases over a 36-month period.
The first phase, expected to be completed by early 2024 will have a production capacity of 6 million units, Sentury said. The second phase, to double the capacity to 12 million units, should be completed by 2025.
Sailun Group Co. Ltd. has unveiled plans for a pair of major industrial investments in China—to establish a "functional new materials" group designed to improve the efficiency of tire production within the group and to build a passenger, truck and OTR tire plant in Shandong Province in a five-phase project valued at $2.25 billion.
The project is expected to take up to five years to complete, Sailun said in a recent filing with the Shanghai Stock Exchange. Once fully on-stream, the factory will be rated at 20 million high-performance passenger tires, 10 million all-steel radial truck tires and 150,000 metric tons of OTR tires.
Sailun said it expects to break ground in the fourth quarter on the project, located in Dongjiakou, a coastal port town about 25 miles south of Qingdao.
The plant will be Sailun's third in China and fifth overall. Its other plants in China are in Shenyang/Liaoning and Dongying/Shandong; its overseas plants are in Phuoc Dong, Vietnam, and Svay Rieng, Cambodia, the latter of which opened in November 2021.
The plans for a "functional new materials" group involve the company's "liquid gold" liquid-phase rubber-mixing process, already being used at the firm's plant in Cambodia.
Sailun has earmarked $345 million for the project, also to be sited at the Dongjiakou factory. It will have a rated annual capacity of 500,000 metric tons of functional new materials once fully on stream.
Zhongce Rubber Group (ZC Rubber), China's largest tire maker and No. 8 worldwide, strengthened its off-highway tire business by acquiring Tianjin United Tire & Rubber International Co (TUTRIC) as part of its global expansion strategy.
Based in port city of Tianjin, in northeastern China, TUTRIC manufactures the Tianli tire brand and will be integrated as Zhongce Rubber (Tianjin) Co. Ltd., upon completion of the acquisition, ZC Rubber said.
The deal is valued at $200 million, and ZC Rubber said it plans to invest more than $100 million in TUTRIC's facilities over the coming five years, in a bid to boost the business' annual revenue sevenfold to $700 million.
Claiming to be "one of the largest suppliers of off-road (OTR) tires in the world," Hangzhou-based ZC Rubber offers a range of products for wheeled loaders, articulated and rigid dump trucks, port applications, underground mines, as well as industrial and forklift operations.
ZC Rubber also relocated truck tire production at its factory in Jiande City, Zhejiang Province, to another facility located nearby. The move move was made at the request of the government and is part of the municipal replanning that envisages a new commercial purpose for the site.