Pirelli has confirmed it will raise prices as part of a strategic move to "limit the effects of the Middle East crisis at the Group level".
The global tyre manufacturer, which employs hundreds of staff in Carlisle and has been operating in the city since the 1960s, published a "mitigation plan" following a meeting between the board of directors last week.
The approach involves raising prices; containment of additional costs; and a review of logistics flows.
Pirelli also says it will temporarily increase back-up inventories of critical raw materials to ensure continuity of production.
The company has not yet responded to a request for further detail about price increases on a local scale, but did say in its original statement that it expected the volatility of input costs and raw materials to "progressively normalise in the second half" of 2026.
An official release from Pirelli reads: "The evolution of the Middle East crisis remains uncertain in terms of its duration and potential impact.
"The tensions in the area are translating into great pressure on the energy markets and raw materials, with significant price increases of oil and gas.
"This scenario, if prolonged, will translate into an increase in inflation with potential impacts of the performance of the economy and demand.
"Pirelli’s exposure to the area is limited, equal to about 1% of group revenues, and immediately implemented a series of actions aimed at guaranteeing the safety of its people in loco, reinforcing its cooperation with local partners and optimising logistics flows."
Pirelli produced its first batch of tyres in Carlisle at the beginning of 1969 and has been a major manufacturer on Dalston Road, functioning as one of two UK Pirelli sites alongside another in Burton-on-Trent, Staffordshire.
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