From Yahoo Finance: 2025-04-11 03:52:00

Italian tyre maker Pirelli halts U.S. investment plans over tensions with Chinese investor Sinochem, who holds a 37% stake. Pirelli generates 25% of revenue in North America, with a plant in Georgia. Italian government intervened in 2023 to curb Sinochem’s powers. Discussions ongoing to resolve governance issues before April 28 board meeting.

Pirelli’s desire to increase U.S. production capacity on hold due to governance and shareholder structure obstacles with Sinochem. U.S. tariffs and restrictions on Chinese technology in the automotive industry also impact decision. Pirelli executive vice-chairman raises concerns over objections from U.S. local authorities due to Sinochem’s stake.

Special envoy hopes for $1 billion Pirelli investment in Georgia, with potential to reach $2 billion for smart tyre production. Italian Prime Minister’s visit to White House may announce investment. Shareholders seek solutions to governance issues before board meeting. Discussions ongoing with Sinochem to address regulatory obstacles.



Read more at Yahoo Finance: Pirelli says US investment plans on hold over Chinese shareholder