Pirelli invests 114 million euros in Silao, Mexico tyre factory

Pirelli marked the 10th anniversary of its Silao, Mexico factory with the announcement of 114 million euros of investment, envisaged in the 2021-2022 to 2025 industrial plan. The construction project is aimed at further increasing high-value production at the Mexican site and will take place during a two-year period, according to the company. As a result, the plant will see an increase in production capacity of over 1 million units, making a total of 8.5 million tyres a year by 2025 when fully operational, up from 7.2 million at the end of 2022.

The move will result in a significant expansion of the factory’s production area and will also create of 400 new jobs, making a total headcount of 3,200 employees when fully operational. The investment was announced on 29 October 2022 during the visit by the governor of the Mexican state of Guanajuato, Diego Sinhue Rodríguez Vallejo, to the Silao factory for the celebration of its tenth anniversary.

The latest announcement brings Pirelli’s total investment in the Mexican plant since to more than 800 million euros and follows the announcement in May 2022 of the creation of the Italian company’s first Research and Development Center in Mexico, which is in addition to the 13 existing centres around the world.

“The Silao plant has made an important contribution to the success of Pirelli’s global strategy of becoming the leader in the High Value segment. When we chose Silao, and the Guanajuato region, as the location for a new plant 10 years ago, our expectations were very high. Today I am happy to say that we have achieved our goals and that the factory and the people who work there have exceeded our expectations. In fact, the Silao plant is one of the most technologically advanced in the Group and will soon host a new Pirelli R&D Centre. As we have for 10 years, we continue to strongly believe in Silao and its people”, said Marco Tronchetti Provera, Executive Vice Chairman and CEO of Pirelli said via video.

“Mexico is a strategic area for Pirelli for all its activities in North and Central America and with this investment we will further increase Pirelli’s technological and industrial competitiveness. I wish to thank all the people and the institutions, who over these years have contributed to the growth of the Silao factory”, said Claudio Zanardo, President and CEO of Pirelli North America.

Located within the Silao “Puerto Interior” industrial hub, in the state of Guanajuato, one of Mexico’s major logistics centres and key economic and technology hubs, Pirelli inaugurated the plant in 2012 to serve the local and North American markets.

In the last 10 years, the Silao plant has grown from around 1.5 million tyres-a-year capacity and a staff of 300 people at the end of 2012 to a capacity of 7.2 million tyres at the end of 2022 and around 2,800 employees.

According to an official statement, the Mexican plant “has always delivered the most innovative Pirelli solutions, like Cyber Tyre, PNCS (Pirelli Noise Cancelling System), and RFID writing, aimed at tracking tyres to provide product information to the entire logistics chain.” It is also said to be equipped with the group’s most advanced production processes. And that includes the implementation of principles of Industry 4.0.

Pirelli’s Mexican plant “has always delivered the most innovative Pirelli solutions, like Cyber Tyre, PNCS (Pirelli Noise Cancelling System), and RFID writing, aimed at tracking tyres to provide product information to the entire logistics chain”. And that includes the implementation of principles of Industry 4.0. (Photo: Pirelli)