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

This deal is a major milestone toward empowering and advancing local content in Saudi Arabia through its localisation initiative, Nusaned, Sabic said.

The agreement was signed on the first day of the PIF Private Sector Forum 2026 in Riyadh and it is considered first of its kind as it supplies raw materials for producing car tyres locally in the Kingdom in a plant located in the King Salman Automotive Cluster at King Abdullah Economic City. 

In this regard, a bespoke Saudi trademark will be launched for providing passenger vehicles and car manufacturers in the region with tyres, in addition to Pirelli tyres, Sabic said. -TradeArabia News Service