Tyre maker Pirelli sus­pends pro­duc­tion in Venezuela

The Star (St. Lucia) - - BUSINESS -

Tyre man­u­fac­turer Pirelli says it is sus­pend­ing its pro­duc­tion in Venezuela in­def­i­nitely as it can­not get the nec­es­sary raw ma­te­ri­als.

Pirelli is the lat­est for­eign com­pany to sus­pend its op­er­a­tions in Venezuela amidst a se­vere eco­nomic cri­sis.

The firm said it would cease pro­duc­tion at its Guacara plant in Carabobo state from 16 June af­ter 26 years in busi­ness in Venezuela.

It comes a month af­ter Gen­eral Mo­tors said it was leav­ing Venezuela.

In a state­ment, Pirelli of Venezuela said it would do ev­ery­thing pos­si­ble to con­tinue sup­ply­ing the coun­try with tyres.

The Venezuela di­vi­sion of the Ital­ian-based tyre maker had halted pro­duc­tion once be­fore for two weeks last Jan­uary, but this time it said the sus­pen­sion was in­def­i­nite.

Ear­lier this week, Col­gate-Pal­mo­live an­nounced it would no longer pro­duce dish­wash­ing liq­uid and de­ter­gent in Venezuela, also due to a lack of raw ma­te­ri­als.

Also this week, United Air­lines said it was sus­pend­ing its Hous­ton to Cara­cas route due to a lack of de­mand from 1 July.

The gov­ern­ment blames the cri­sis on an “eco­nomic war” be­ing waged against it by “US im­pe­ri­al­ists and the Venezue­lan oli­garchy”.

But crit­ics say the dire state of the econ­omy is the fault of 18 years of mis­man­age­ment by the so­cial­ist gov­ern­ments of pres­i­dents Hugo Chávez and Ni­colás Maduro.

Al­most daily antigov­ern­ment protests have fur­ther height­ened ten­sions in the oil-rich coun­try.

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