- SABIC polybutadiene rubber agreement enables production of 3.5 million tires annually in Saudi Arabia.
- The partnership strengthens Saudi tire manufacturing through localized raw material supply.
SABIC polybutadiene rubber supply is central to a new industrial agreement aimed at strengthening Saudi tire manufacturing capacity. On February 15, the Saudi Basic Industries Corporation signed a strategic deal with the joint venture formed by the Public Investment Fund and Pirelli. The partnership ensures a steady supply of polybutadiene rubber and carbon black to support the production of up to 3.5 million tires annually. This initiative aligns with broader localization efforts under the NUSANED initiative, reinforcing domestic manufacturing capabilities within the Kingdom?s automotive ecosystem.
SABIC Polybutadiene Rubber Agreement for Local Tire Production
The SABIC polybutadiene rubber agreement marks a significant step in advancing local tire production. By supplying essential raw materials such as polybutadiene rubber and carbon black, SABIC enables the joint venture to establish a robust manufacturing base within Saudi Arabia. This move represents the first agreement of its kind focused on providing key tire inputs domestically, reducing reliance on imported materials while strengthening industrial integration.
Role of Carbon Black Supply in Tire Manufacturing
Carbon black supply is equally critical in ensuring tire durability, strength, and performance. Combined with SABIC polybutadiene rubber, these materials form the backbone of high-quality tire production. The secured supply chain enhances operational efficiency and supports consistent manufacturing output for passenger vehicles and regional automotive manufacturers.
King Salman Automotive Cluster and Industrial Localization
The manufacturing facility will be located within the King Salman Automotive Cluster at King Abdullah Economic City. This industrial hub is designed to foster automotive sector growth by integrating suppliers, manufacturers, and technology partners. SABIC polybutadiene rubber deliveries to this facility will directly contribute to Saudi tire manufacturing expansion, aligning with national industrial development strategies.
NUSANED Initiative and Capacity Expansion
Through the NUSANED initiative, the project targets an annual production capacity of 3.5 million tires. The initiative emphasizes local value creation, supply chain development, and enhanced competitiveness in the automotive sector. SABIC polybutadiene rubber supply ensures material reliability while supporting scalable production operations within the Kingdom.
Regional Impact on Passenger Vehicle Tire Supply
Beyond meeting domestic demand, the project includes plans to introduce a bespoke Saudi trademark dedicated to serving passenger vehicles and automotive manufacturers across the region. This strategy complements existing premium tire offerings while positioning Saudi Arabia as a competitive production base. The SABIC polybutadiene rubber partnership strengthens regional supply capabilities and supports long-term industrial sustainability through localized raw material integration.
With secured polybutadiene rubber and carbon black supply chains, Saudi tire manufacturing is positioned for sustained growth, reinforcing the Kingdom?s ambition to become a key automotive production hub.
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