Pirelli's board of directors has approved a multi-year investment plan worth approximately €1bn ($1.14bn) to expand its tyre manufacturing facility in Rome, Georgia, in the US.

The plan passed by majority vote, though three Sinochem-nominated board members – Zhang Haitao, Xi Xiaohong and Wang Kun – voted against it.

Implementation will begin in phases from 2027, lifting the plant's annual output capacity to around six million car tyres by 2033.

The upgrade will incorporate Cyber Tyre technology and is projected to generate roughly 1,000 new jobs.

According to the company, the investment will support its “growth in the high value segment in the US, the world's largest market for this segment, accounting for approximately 40% of global volumes”.

It added that the plan will also “strengthen the company's local-for-local strategy, enhance supply chain resilience, and meet the growing demand for technologically advanced “Made in USA” products.

Work will unfold across two stages.

The initial phase will ramp up robotised manufacturing using the newest version of Pirelli's proprietary modular integrated robotised system.

The subsequent phase will see a fully automated conventional facility built for premium products, contributing another three million tyres in annual capacity once fully operational.

Following governance changes introduced under Italy's Golden Power Decree, Pirelli said it has secured clearance from the US Bureau of Industry and Security to sell its Cyber Tyre system within the US market.

In July, Chinese state-owned Sinochem sold a 14% stake in Pirelli to Lumina Crown, an investment vehicle controlled by Czech businessman Michal Strnad, cutting its holding from 34.1% to 20.1%.

According to Pirelli, the plan will leave its 2026 targets unaffected, with the capex-to-revenue ratio for 2027-2033 expected to stay broadly consistent with prior periods, while maintaining the group's cash generation.

The company has operated in Georgia since 2002.