The Italian government has launched an administrative procedure against Sinochem, the largest shareholder in Italian tire manufacturer Pirelli, raising concerns about potential breaches of national security measures, The Associated Press reports.
The investigation, initiated under Italy’s “golden power” provisions, focuses on whether Sinochem’s 37% stake in Pirelli violates restrictions designed to protect strategic assets. These provisions, enacted in mid-2023, include limitations on access to sensitive information and increased vote thresholds for crucial decisions.
Pirelli, in a statement released Wednesday, confirmed the procedure but asserted that Sinochem has denied any wrongdoing. The company added that the Italian government has 120 days to issue a finding.
The government’s concerns stem from the “critical technology of national strategic importance” embedded in Pirelli’s tires. These sensors collect data like road layouts, geolocation, and infrastructure status, potentially posing security risks if accessed by foreign entities.
The move comes as Italy grapples with balancing economic partnerships with China while safeguarding national security. The second-largest investor in Pirelli is Camfin, the investment arm of former CEO and current vice-chairman Marco Tronchetti Provera, holding a 32.4% stake.
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