Pirelli, Hyundai, Schneider Electric, Emerson among multinationals opening factories in Saudi as the Kingdom accelerates plans to localise manufacturing

Last month, leading global tyre manufacturer Pirelli announced a joint venture with Saudi Arabia’s sovereign wealth fund PIF to build a tyre manufacturing facility in the Kingdom.

Expected to fire up production in 2026, the US$550 million joint venture will manufacture high-quality tyres for passenger vehicles, under the Pirelli brand, as well as manufacture and market tyres under a new local brand targeting the domestic and regional market.

The plant is expected to generate an annual production capacity of 3.5 million units.

For Pirelli, this provides access to one of the most promising markets in the world, while for Saudi, it marks a pivotal milestone in its journey to localise manufacturing capabilities – as part of its Vision 2030 Strategy to diversify the economy and enhance sustainability.

Pirelli’s commitment to Saudi marks the latest in a growing list of multinationals, from Hyundai to Lucid Motors, Schneider Electric to Emerson, announcing investment in production facilities in Saudi in 2023 – as the Kingdom accelerates its goal to become a global hub for global manufacturing.

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