Pirelli is set to expand its presence in Mexico by investing $200m in a new tyre factory.
This investment is an addition to the $360m invested in the first Silao plant, which opened in 2012, and the $50m already designated for 2016-17. At the end of 2018, Pirelli's total investment in the two plants will be above $600m.
Pirelli's production hub in Silao at present covers 140,000 sq m, with an annual output capacity of about 3m tyres. At the end of the initial phase of the investment in the second plant, production capacity is expected to reach 5m pieces annually.
Manufacturing at the second plant is slated to commence in 2017, which will permit the production of about 2.5m tyres, and Silao's total production capacity will reach 7.5m tyres by the end of 2018.
The Silao plant currently employs 1,400 workers, but with the new plant the number of workers is forecast to grow to over 1,800, beyond the existing 400 ancillary workers.