Pirelli & C. S.p.A has sold its tire factory in Venezuela and ceased all other operations in the country under severe economic crisis.
In a statement on its website, Pirelli announced the “disposal” of its car tire factory in Venezuela, located in the city of Guacara in north-central Venezuela. It has also ceased all activities held in the country.
The operation follows the de-consolidation of Pirelli’s Venezuelan subsidiary, which took place in December 2015. The move to abandon its operations in Venezuela “has no financial effects on the group,” Pirelli said.
The agreement, which calls for employment continuity, was reached with a consortium of South American entrepreneurs and the company Sommers International, in the capacity of buyer. Pirelli said ti would like to thank its collaborators and clients for its 28 years of activity in the country and wishes the new management every success.
Venezuela’s economy is in freefall, the BBC reports. Hyperinflation, power cuts and food and medicine shortages have driven millions of Venezuelans to flee the country. Last June, Pirelli suspended production at its Venezuelan factory, and Bridgestone Corp. sold its subsidiary in the country in May 2016.