Pirelli 'disposes' its Venezuelan tire plant to South American investors

Milan – Pirelli & C. SpA has "disposed" its passenger tire plant in Guacara, Venezuela, to a consortium of South American entrepreneurs and a company called Sommers International.

Pirelli did not identify the investors nor disclose any financial information, but did say the disposal would have no financial effects on the group. The agreement calls for employment continuity at the 28-year-old factory.

In late August, Pirelli ceased operations at the plant, claiming that it would not accede to paying a wage increase decreed on 17 Aug by the government of Nicolás Maduro.

Pirelli "deconsolidated" its operations in Venezuela in 2015 because of the unstable economic situation there. At that time, the tire maker said its Venezuelan operation would no longer be included in its financial results.

Pirelli de Venezuela CA produced passenger and light truck tires at the plant, with up to 700 employees at the peak of operations.