Pirelli approves $1.2bn US plant expansion in Georgia

Pirelli's Board of Directors has greenlit a €1 billion investment plan to expand its manufacturing facility in Rome, Georgia, the United States. The investment aims to bolster the company's presence in the High Value tire segment, which accounts for about 40% of global volumes in this market category. The Rome plant expansion is set to commence in 2027, with completion scheduled for 2033.

This will result in an increase in annual production capacity to approximately 6 million car tires, including products featuring Pirelli's Cyber Tyre technology. The project is expected to generate around 1,000 new jobs in the region.

The expansion will occur in two phases. The first phase will see a 3 million tire per year capacity increase using Pirelli's MIRS technology, a Modular Integrated Robotized System. This is expected to begin in 2028. A second phase will introduce a fully automated conventional production facility, adding another 3 million tires per year capacity.

Pirelli has obtained authorization from the Bureau of Industry and Security to sell its Cyber Tyre system in the US market following changes to Italy's 2026 Golden Power Decree. The company reassures that this expansion will not impact its 2026 targets, with the capital expenditure-to-revenue ratio for 2027-2033 expected to remain stable with previous periods.

In organizational changes, Pirelli has eliminated the Corporate General Management function. As part of this restructuring, Francesco Tanzi, who served as Corporate General Manager, has been terminated from his position with effect from December 31, 2026. Tanzi will receive a severance payment equivalent to 13 months of remuneration by February 2027 and will adhere to a two-year non-compete agreement covering Pirelli's principal operating countries.

He will also be granted a consultancy agreement for two years, with an annual compensation of €350,000.