Venezuela announces $30m investment to revive 'national tire plant'

Carabobo, Venezuela – The government of Venezuela has announced a strategic alliance with international investors to “modernise and revive” a tire plant in Carabobo state, northern Venezuela.

In a 12 Sept statement, the ministries of industries and labour, and the international centre for productive investment (CIIP) said an initial investment of over $30 million (€25 million) had been allocated to revive the “national tire plant”.

The investment will be directed toward technological upgrades, restoring production lines, and training the workforce in close coordination with plant employees and their unions.

The revival plan aims to “at least triple” current tire production within the first 12 months, with the goal of replacing imports and meeting the country’s full domestic demand with locally manufactured tires.

Venezuela’s tire industry has a long history, with major factories located in Carabobo.

Goodyear operated a major tire plant in Valencia, Carabobo state, which closed in December 2018 due to economic conditions and sanctions.

In 2016, Corimon CA acquired Bridgestone Firestone Venezolana, renaming it Alice Tires of Venezuela, to operate a tire manufacturing plant in Valencia.

The acquisition was part of Bridgestone's strategy to exit the Venezuelan market due to economic deterioration.

Pirelli also operated a factory in Guacara, in Carabobo state, for nearly two decades before ceasing operations in 2018 due to economic challenges and lack of raw materials.

The latest government statement did not specify which plant is the subject of the investment.

The joint effort, it said, aims at strengthening the automotive industry's supply chain, and generating “significant foreign exchange savings” for the country.