+971 52 248 8528
+966 56 233 0183
Saudi Basic Industries Corporation (SABIC) has signed a strategic agreement with the joint venture between the Public Investment Fund (PIF) and Pirelli to supply essential raw materials for tire manufacturing in Saudi Arabia. The agreement covers the supply of polybutadiene rubber and carbon black, supporting the local production of up to 3.5 million tires annually.
This agreement marks the first initiative of its kind to supply raw materials for domestic tire manufacturing in the Kingdom. Production will take place at the King Salman Automotive Cluster, located within King Abdullah Economic City, further strengthening Saudi Arabia’s industrial ecosystem.
The move aligns with SABIC’s commitment to supporting national downstream industries and expanding local content development through its localization program Nusaned™. By enabling advanced manufacturing capabilities, the agreement directly contributes to Saudi Vision 2030, reducing import dependency and boosting industrial self-sufficiency.
For investors and manufacturers, this development highlights Saudi Arabia’s growing attractiveness as a global manufacturing hub. Companies looking to enter or expand in the Kingdom’s industrial sector must ensure full regulatory compliance, licensing, and localization alignment.
J K Management Consultancies plays a key role in supporting businesses through Saudi industrial licensing, commercial registration, SFDA approvals, investor documentation, and end-to-end business setup services, helping manufacturers capitalize on opportunities created by landmark agreements like this.
