Riyadh – Sharikat Mubasher: Saudi chemicals giant SABIC announced it has signed a strategic supply agreement with the joint venture between Public Investment Fund (PIF) and Pirelli to provide key raw materials for local tire manufacturing in the Kingdom. According to a recent press release, SABIC will supply polybutadiene rubber and carbon black to support the production of up to 3.5 million tires annually at a new manufacturing facility located in the King Salman Automotive Cluster at King Abdullah Economic City under this agreement.

Signed on the opening day of the fourth edition of the PIF Private Sector Forum in Riyadh, the agreement is described as the first of its kind in the Kingdom, enabling the local production of automotive tires using domestically supplied raw materials. As part of the initiative, a dedicated Saudi tire trademark will be launched to serve passenger vehicle markets and regional automakers, alongside Pirelli-branded products.

Back int October 2023, the PIF concluded a joint venture (JV) agreement with Pirelli, the global tire manufacturer, to establish a tire manufacturing facility in the Kingdom with investment worth $550 million. The agreement was signed during the seventh edition of the Future Investment Initiative (FII7).