SABIC Signs Agreement to Supply Raw Materials for Tire Manufacturing in Saudi Arabia

The Saudi Basic Industries Corporation (SABIC) signed an agreement with the joint venture between the Public Investment Fund (PIF) and Pirelli to supply raw materials—polybutadiene rubber and carbon black—for the production of 3.5 million tires annually.

The agreement comes as part of SABIC’s support for national downstream industries and its continued efforts to enable and develop local content in the Kingdom through its localization initiative Nusaned™.

The agreement marks the first of its kind to supply raw materials for local tire manufacturing in Saudi Arabia. Tire production is scheduled to take place at King Salman Automotive Cluster in King Abdullah Economic City.

Last week, PIF closed the fourth edition of its Private Sector Forum, announcing the signing of more than 135 memorandums of understanding worth over 60 billion riyals (about $16 billion).

The agreements reflect rising confidence in the Saudi business climate and the fund’s ability to generate high-quality investment opportunities that attract both local and foreign capital.

aawsat.com