In Venezuela, a new tire project is being launched

The government of Venezuela has announced the creation of a strategic alliance with international investors to resume production and modernize the tire factory in the state of Carabobo. The initiative is being implemented jointly by the Venezuelan Ministries of Industry and Labor with the participation of the International Center for Productive Investments (CIIP) as part of the state policy for import substitution and development of domestic industry.

The state of Carabobo was previously the center of the Venezuelan tire industry, but in 2018, due to economic complexities and a lack of available raw materials, the Pirelli plant was closed, and in the same year, Goodyear stopped production, which was partly due to sanctions imposed on the country. In 2016, the Bridgestone plant in the state was sold to Corimon Group, which renamed it Alice Neumáticos de Venezuela and now produces tires under the Firestone and Seiberling brands.

In the initial stage, the investment in the new project will exceed $30 million, and it is reported that the funds will be used for technological re-equipment of the plant, restoration of production lines, and personnel training.

As noted by Venezuelan media, the new plan will be implemented together with trade unions, and it is expected that production volumes will increase at least threefold within the first year of the project's implementation. It is also reported that the joint efforts of the state and foreign investors will guarantee the creation of quality jobs and accelerate the development of the local automotive industry. Additionally, it is expected that the restart of production will ensure significant currency savings and contribute to the country's economic stability.

Photo: efectococuyo.com