Pirelli suspends tire production in Venezuela

Milan, Italy –  Pirelli & C. SpA has suspended operations indefinitely at its Venezuela tire production plant due to failure to secure raw materials.

The temporary stoppage will start 16 June and that Pirelli is currently trying to find a way to continue production at the facility, based at Guacara in Carabobo state,  an industry source told ERJ.

The Italian tire maker announced a temporary suspension of production at the site in January this year, again citing raw materials’ shortage as the reason.

It is not clear which materials have been difficult to source for the plant.

The Guacara facility was set up in 1950 and produces 4,000 units per day of passenger car and light vehicle tires.

Pirelli deconsolidated its operations in Venezuela in December 2015 due to a “deterioration of the macro-economic context, growing restrictions on the conversion of foreign currencies and the reduced availability of US dollars”.

At the time, Pirelli said that the Venezuelan operation would no longer be included in its results. The operation, is however, still owned by Pirelli.

The suspension of production comes a month after General Motors announced it was leaving Venezuela.