Italy-based tyre manufacturer Pirelli has suspended production in its Venezuela site for an indefinite period of time due to lack of the necessary raw materials.
Pirelli is the latest foreign company to suspend its operations in Venezuela amidst a severe economic crisis. The company’s announcement comes just a month after American vehicle manufacturer General Motors (GM) said it was leaving Venezuela.
According to Pirelli, it will cease production at its Guacara plant in Carabobo state from June 16 after 26 years of being in business in 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 July 1.
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.
Tensions in the oil-rich country are being further heightened by almost daily anti-government protests.