Pirelli has put on hold plans to invest further in the US as it tries to smooth out tensions linked to having Chinese state-owned group Sinochem as its largest investor, the Italian tyre maker said on Friday.
Sinochem has a 37% stake in Pirelli and is at odds with the company and its Italian shareholders over governance, at a time when being seen as a Chinese-linked business is increasingly proving an obstacle for doing business in the US, one of Pirelli’s key markets.
Pirelli makes about 25% of its revenues in North America, which it mostly serves through its plants in Mexico, South America and Europe, though it also runs a smaller facility in the US state of Georgia.
Reuters
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