CNRC submits proposal to address hurdles of Pirelli's US expansion

China National Tire and Rubber Co Ltd, or CNRC, the controlling shareholder of Italian tire maker Pirelli, has submitted a proposal to address governance arrangements and potential regulatory concerns in the United States.

The move follows an announcement last week by Camfin, Pirelli's second-largest shareholder, that it would not renew its shareholder agreement with China's Sinochem Holdings Corp, the parent group of CNRC.

Milan-based Camfin said Pirelli's expansion in the US faces additional hurdles due to its main shareholder being a Chinese entity, as the US government steps up restrictions on Chinese automotive technology.

In response to this move, CNRC said it has submitted a structured, well-founded proposal based on standard and widely used corporate tools in line with the best international practices, with the objective of addressing both Pirelli's governance framework and the concerns related to US regulatory requirements, if any.

According to a CNRC statement released on Monday, the Chinese company hopes its proposal can be neutrally assessed with genuine cooperative spirit and it will support any institutional, transparent, and fact-based assessment process.

CNRC reiterated its full willingness to engage in good-faith discussions with relevant parties to identify market-consistent and sustainable solutions that are in the best interest of Pirelli, its shareholders, its employees, and its long-term industrial development in every international market.