Blatco and Golden Star Rubber Unite for Major Tire Plant in Saudi Arabia
Saudi Arabia’s Black Arrow Tire Co. (Blatco) is joining forces with Thailand’s Golden Star Rubber Co. to establish the largest tire manufacturing plant in the Middle East, located in Yanbu. This venture involves a significant $470 million investment.
Initially, the facility will produce 4 million tires annually for passenger vehicles, with plans to increase output to 6 million tires, including those for trucks and buses. This project is expected to enhance Saudi Arabia’s industrial capacity and create over 2,000 jobs locally.
The Saudi tire market, which reached 22.6 million units in 2023, is anticipated to grow at a 1.26% annual rate, potentially reaching 25.5 million units by 2032, according to IMARC Group.
Currently dominated by affordable Chinese brands, the market has seen a rise in demand for higher quality flagship brands. The partnership between Blatco and Golden Star Rubber was formalized in a ceremony attended by notable figures, including Abdullah Al-Wahibi and Amir Zafar.
This initiative aligns with Vision 2030, aiming to localize industries and boost domestic content. Supported by the Saudi-Thai Business Council, it seeks to strengthen commercial ties between Saudi Arabia and Thailand.
The plant will be located in Yanbu, overseen by the Royal Commission for Jubail and Yanbu. Blatco expects that half of its production will serve local demands, with the rest being exported regionally.
Earlier, Blatco entered a 20-year agreement with South Korea’s Kumho Tire for technology transfer, enabling the production of passenger car tires in the Middle East.
Founded in 2019, Blatco aims to play a pivotal role in the region’s automotive manufacturing landscape, emphasizing economic contribution and job creation.
Additionally, Saudi Arabia’s Public Investment Fund announced a separate $550 million tire factory in partnership with Italy’s Pirelli. This facility, expected to launch in 2026, will produce tires under the Pirelli brand and a new local brand, with PIF holding a 75% stake.
