Pirelli approves €1 billion expansion in Georgia despite board split
The board of Italy-based tyre manufacturer Pirelli has approved a €1 billion investment plan to expand its production facility in Rome, Georgia, in the United States. The decision passed with a majority vote in September 2023, though three directors — Zhang Haitao, Xi Xiaohong and Wang Kun — voted against the plan. The three dissenting board members represent Sinochem, the Chinese state-owned conglomerate and Pirelli's largest shareholder.
The investment will be distributed over seven years, from 2024 to 2030, and will transform the Georgia plant into an industrial hub for technologically advanced tyres. The facility, which Pirelli opened in 2002, already specialises in premium products for the US market.
Two-phase expansion with Cyber Tyre technology
The expansion will unfold in two distinct phases. The first phase introduces the latest evolution of Pirelli's proprietary MIRS technology — Modular Integrated Robotized System — a production method that compresses the traditional 14 manufacturing steps into just three. This phase will see a gradual increase in robotized production starting in 2025, eventually reaching 3 million tyres annually.
The second phase adds a fully automated conventional plant dedicated to premium products, adding another 3 million units of annual capacity. By 2030, once both phases reach full operation, the Rome facility will produce approximately 6 million car tyres per year, including products equipped with Cyber Tyre technology. Cyber Tyre integrates sensors into the tyre to collect and transmit real-time data on pressure, temperature, road conditions and wear to vehicle electronics.
Pirelli began producing Cyber Tyre at the Georgia plant in May 2023, ahead of the formal approval of this expansion plan, as part of a pilot initiative to test demand and refine the technology. The technology supports vehicle-to-everything (V2X) connectivity, enabling communication with infrastructure and other vehicles — a capability increasingly relevant for autonomous driving development.
1,000 new jobs and strategic positioning
The expansion will create approximately 1,000 new jobs at the Rome facility, with the bulk of hiring expected to begin in 2026. Pirelli stated the project will not affect its 2023 financial targets and that the capex-to-revenue ratio over the 2024–2030 period will remain substantially in line with previous periods, preserving group cash generation.
For Pirelli, the United States represents the largest market globally for high-value tyres, accounting for roughly 40% of volumes in this segment. The expansion reinforces the company's "local-for-local" strategy — producing where the demand exists — and strengthens supply chain resilience. The company said local production of advanced tyres addresses growing demand for "Made in USA" products from American consumers and automotive manufacturers.
Context of the board opposition
The three directors who opposed the investment represent Sinochem, which has been Pirelli's largest shareholder since 2015. Their dissent comes amid heightened geopolitical scrutiny. The Italian government exercised its "Golden Power" veto rights to limit Sinochem's influence over Pirelli's governance, citing concerns that Chinese control could hinder the company's growth in the US market and pose risks to technological security, particularly regarding Cyber Tyre data collection capabilities.
US authorities have also expressed concerns about Chinese ownership of Pirelli, raising potential restrictions on tyres with data-gathering technology if Chinese influence were not reduced. The specific reasons for the three directors' opposition were not publicly detailed in the announcement.
No public statements from the dissenting directors explained their vote. The decision represents a significant commitment by Pirelli to its long-term presence in Georgia, where the company has operated for 21 years and maintains relationships with state and local authorities as well as universities.
