Italy is taking measures to reduce the influence of China’s Sinochem in tire maker Pirelli SpA. According to reports, the Italian authorities are entering talks with Pirelli’s investors to control the ownership structure of the company. The options being looked out are limiting the information sharing involving Sinochem-appointed board members. Also the voting rights of board members appointed by Sinochem can be curtailed by the Italian government. Out of the Pirelli’s 15 board members, the exact number of Sinochem members remains undisclosed.
Pirelli is an Italian tire manufacturer founded in 1872. It is Europe’s seventh largest tire manufacturer for passenger cars and light commercial vehicles. The company manufactures several kinds of tires such as car, industrial vehicle and motorcycle tires. Pirelli is focused on producing agricultural and off-road tires along with motorsport tires. The company headquarters are located in Milan.
Sinochem is a state-owned Chinese company founded in 1950. It is involved in producing chemicals and is one of the major oil and gas company in the Chinese market. Sinochem holds a 37% stake in Pirelli making it its largest shareholder. The Sinochem group consists of over one hundred various companies, including oil refineries, chemical plants, agricultural resources and more.