The Public Investment Fund (PIF) and Pirelli Tyre formed a joint venture (JV) agreement to construct a tyre manufacturing facility in Saudi Arabia. The new JV will be majority-owned by PIF, holding a 75 percent stake, while Pirelli will have the remaining 25 percent and serve as a crucial technology partner, offering technical and commercial expertise to support the project’s development.

Production at the plant is slated to commence in 2026. The JV will focus on producing high-quality tyres for passenger vehicles under the Pirelli brand. Additionally, it will introduce a new local brand to cater to the domestic and regional markets. The total investment in this venture is estimated at around $550 million. Pirelli anticipates that the project will have a neutral impact on the company’s deleveraging goals through 2025.

Saudi Arabia aims to emerge as a global automotive manufacturing hub by 2030. PIF has played a pivotal role in establishing a world-class automobile sector within the country, driving transformation and fortifying manufacturing capabilities, infrastructure, and supply chains domestically and internationally. Noteworthy investments include the recent landmark $500 million joint venture between PIF and Hyundai Motor Company to establish an advanced automotive manufacturing plant in Saudi Arabia. Additionally, the launch of Tasaru, the National Automotive and Mobility Investment Company, focuses on localising automotive supply chains and manufacturing capabilities.

PIF has also made significant strides in the future of mobility, including establishing Ceer, Saudi Arabia’s inaugural national electric vehicle brand, and investments in Lucid Motors, which recently inaugurated its first international manufacturing plant in Saudi Arabia.

As a leading global tyre manufacturer, Pirelli will contribute technical support and expertise in the design, development, and operation of the plant. Through this JV, PIF and Pirelli are dedicated to creating a national and regional powerhouse that localises manufacturing capabilities for a crucial segment in the automotive industry, while facilitating upstream and downstream activities across the value chain.

The plant is projected to achieve an annual production capacity of 3.5 million units, yielding additional economic benefits and embracing a commitment to environmental sustainability. Furthermore, the JV will be a pivotal anchor for attracting further investment to Saudi Arabia.

Aligned with its local-for-local strategy, Pirelli, through the JV, is set to become the first tier 1 tyre maker to source production in Saudi Arabia directly.

Yazeed A. Al-Humied, Deputy Governor and Head of MENA Investments at PIF, said: “Through this Joint Venture with Pirelli, PIF is building production capabilities in the automotive and mobility value chain and enhance opportunities for private sector contribution. This collaboration marks another pivotal milestone in our journey to diversify the economy, enhance sustainability and localise manufacturing capabilities in Saudi Arabia”.

Marco Tronchetti Provera, Executive Vice Chairman of Pirelli, said: “Accessing local production in Saudi Arabia, one of the most promising markets today, in line with our positioning in High Value and electric, represents a great opportunity for Pirelli. Capturing it alongside a partner like PIF with its plans to enable the automotive sector.”

As part of a strategic effort to increase its presence in the region's premium original equipment (OE) market, Kumho Tire has confirmed its plans to establish its first tyre production facility in Europe by 2027.

The company has shortlisted Poland, Serbia and Portugal as possible locations for the plant, which is projected to need an investment of more than KRW1 trillion (USD 705 million). The decision is closely linked to Kumho’s ambition to strengthen its partnerships with European automakers and was revealed by Kumho Tire CEO during the South Korean premiere of Kumho's new Ecsta Sport tyre line.

Kumho has recently secured OE supply contracts with major brands such as Mercedes-Benz, BMW and Volkswagen Group. At the moment, Kumho runs eight tyre production plants in China, Vietnam, South Korea and the US. Its capacity to compete in the premium OE market, however, has come to be perceived as being constrained by the absence of a European production base. Through the benefits of local production, the new facility will improve response to European client requests, save freight costs and shorten delivery times, all of which will strengthen the company's partnerships.

Sentury Tire USA has opened pre-enrolment for its two associate dealer programmes (ADPs), the Delinte HYPERDRIVE Associate Dealer Program and the Landsail Elyte Associate Dealer Program, underscoring the company’s commitment to rewarding dedication and partnership to the Landsail and Delinte brands.

The ADPs, which are customised for each brand and intended to encourage dealers, will formally start on 1 June 2025. Both programmes give dealers access to special benefits, incentives and strong tools to help them expand their businesses. This involves dependable customer service, effective marketing and worthwhile financial incentives to promote dealers' success at every stage.

Beginning in Q3, dealers may earn up to USD three per tyre through the Delinte HYPERDRIVE Associate Dealer Program. Dealers can receive retroactive benefits for purchases completed in Q2 if they register before 1 June. The awards are available for all Delinte PTR, LTR and the new DV3 LMD AS last-mile delivery tyres. For all Landsail PTR and LTR tyres, independent dealers that sign up for the Landsail Elyte Associate Dealer Program can also earn up to USD three per tyre. For customers who sign up by June 1, the new LMD 100 AS last-mile delivery is also eligible for the benefits and will get the same early bird incentive for Q2 2025.

No initial order is necessary. Dealers only need to register to begin making money. According to the monthly programme rewards structure, 48 tyre purchases each month are eligible for a reward of USD one per tyre, 120 tyres are eligible for a reward of USD two per tyre and 240 or more tyres are eligible for a reward of USD three per tyre.

ENSO, a London-based tyre manufacturer engaged in the production of sustainable tyres specially designed for electric vehicles (EVs), has launched its new ENSO Premium range of EV-specific ultra-high-performance (UHP) tyres aimed at drivers of high-performance EVs such as the Tesla Model 3 and Model Y.

Specifically designed for electric passenger vehicles, the ENSO Premium range comes with A/A EU-label ratings for both energy efficiency and wet grip. The tyres are designed to provide safety, increased range and a reduced total cost of ownership. Conventional tyre designs frequently fall short of the special performance needs of electric vehicles, which include greater vehicle weight, regenerative braking and higher torque loads. By lowering tyre wear and rolling resistance, ENSO Premium takes care of these issues.

The company is an authorised provider of replacement tyres for LEVC's electric taxis and has partnered with Uber to install its tyres in high-mileage metropolitan areas. The company now plans to grow throughout Europe and North America, and with ENSO Premium, it is now offering its services to individual EV owners throughout the United Kingdom. According to ENSO, the range offers advantages including longer tyre life and fewer replacements, lower energy usage, fewer charging stops and lower CO₂ emissions and tyre particle pollution.

Gunnlaugur Erlendsson, CEO and Co-Founder, ENSO, said, “We’re plugging a long-standing gap in the tyre market by offering EV drivers a purpose-built, affordable, premium EV tyre alternative that matches the innovation of their EV.”

Kraton Corporation, a leading global sustainable producer of specialty polymers and high-value bio-based products derived from pine wood pulping co-products, has announced a general price hike in North America for its SBS, SIS and HSBC product lines with effect from 1 May 2025.

Following a careful analysis of the effects of recently implemented tariffs, related cost increases and a conclusion that the company cannot independently absorb these repercussions, Kraton is adopting these pricing hikes, according to a company statement. The company further said that it will keep an eye on the scene and reassess these measures promptly in the event that conditions and US import tariffs alter.