Pirelli shuts down Venezuela plant: report

Valencia, Venezuela -  Pirelli C & SpA has reportedly closed its production plant in Valencia, Venezuela, where it employs about 700 personnel.

In a 28 Aug report, Reuters quoted union leaders as saying that the closure was not previously announced, and that the staff found gates locked on 27 Aug. The report did not specify if the shutdown was permanent or temporary.

Pirelli has not responded to ERJ’s requests for comments.

Reuters did not provide a reason for the shutdown but hinted that recent economic reforms, including a hike in minimum wages, could have contributed to the closure.

In January 2017, Pirelli’s Venezuela plant stopped local operations for two weeks due to “lack of raw materials”.