Italy has limited the number of Sinochem Group directors are permitted on Pirelli’s board, citing the need to protect the tyre maker’s access to the US market.
According to sources cited by Bloomberg, measures approved at a cabinet meeting cap the number of board candidates Sinochem’s Pirelli investment vehicle can propose at three.
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Under the same provisions, those nominees cannot take the roles of chairman or chief executive.
The report said at least two of the three candidates must be independent of Sinochem.
The limits are set to apply for as long as Sinochem holds more than 9.99% of Pirelli’s shares.
Sinochem currently has eight seats on Pirelli’s 15-member board.
The decision comes after shareholder talks failed to settle governance issues, which have become more sensitive as the US tightens rules around Chinese-connected technology.
The US accounts for more than 20% of Pirelli’s revenue.
Italy’s move is the latest in a dispute handled under Prime Minister Giorgia Meloni’s administration, which has been weighing ties with Washington and Beijing.
It first stepped in on Pirelli in June 2023, pointing to the protection of strategic technology and data associated with the company’s Cyber Tyre sensors.
That system combines sensors embedded in tyres with proprietary software to deliver real-time information on tyre condition and road surface, supporting safety and efficiency features in connected vehicles.
Pirelli has said the governance row has not harmed operating results.
In February, the company said it achieved its financial goals for 2025, reporting higher profit and outlining a dividend proposal while setting out a 2026 budget aimed at steady revenues and margins.
The Italian tyre maker said net profit for the year rose 5.9% to €530.7m ($626.52m).
Full year revenue reached €6.77bn, at the upper end of guidance, with organic growth of 4.2%.
Adjusted EBIT rose 2.0% to €1.08bn, taking the adjusted EBIT margin to 16% from 15.7% a year earlier. Net profit compared with €501.1m in 2024.
In the fourth quarter, revenue was €1.58bn.
Adjusted EBIT was €245.9m versus €244.6m in the fourth quarter of 2024, with margin at 15.6% from 15.4%. Net profit was €130.1m compared with €130m.
