Pirelli announces a 1 billion investment plan in the US

Pirelli’s board of directors has given the go-ahead for an investment plan in the United States worth around 1 billion euros. The project aims to expand the Rome plant in Georgia, which is already dedicated to producing the most technologically advanced solutions for the US market.

The plan was approved by a majority, with Chinese directors Zhang Haitao, Xi Xiaohong and Wang Kun voting against it, and will support Pirelli’s growth in the High Value segment in the United States – the world’s largest market in this segment, accounting for around 40 per cent of global volumes – “by strengthening the ‘local-for-local’ strategy and the resilience of the supply chain, whilst meeting the growing demand for technologically advanced products made in the USA”.

Furthermore, the group explains in a statement that the investment further consolidates its long-term commitment to the country, where Pirelli has been present in the State of Georgia since 2002 and where it enjoys strong relationships with the government, local authorities and universities. The expansion plan will be rolled out over several years from 2027 and will enable an increase in production capacity at the Rome plant, including Cyber Tyre technology. Thanks to this plan, the plant in Georgia will, when fully operational in 2033, produce around 6 million car tyres and employ around 1,000 new staff.

Pirelli’s board of directors has also approved a new organisational structure which provides for the abolition of the corporate general manager role with immediate effect. The board has therefore approved the terms and conditions relating to the termination of the employment contract with corporate general manager Francesco Tanzi. To ensure a smooth transition, a statement said, ‘Tanzi will remain in his executive role until 31 December 2026. In accordance with the Pirelli Group’s current remuneration policy, Francesco Tanzi is entitled, in addition to the remuneration due and accrued up to the date of termination of employment, to a severance payment equivalent to approximately 13 months’ remuneration, to be paid by February 2027. Furthermore, Tanzi retains the rights accrued up to the date of termination of his employment in relation to participation in incentive schemes. Tanzi will remain bound, for the two years following the termination of his employment, by a non-competition agreement valid in the main countries in which Pirelli operates, in return for a payment equal to 130 per cent of his gross annual salary.”