Business

Venezuelan Government takes over Goodyear plant

Friday, December 14, 2018

Print this page Email A Friend!


CARACAS, Venezuela (AFP) — The Venezuelan g overnment took control Tuesday of installations owned by Goodyear, a day after the US tyre-maker closed its operations in the crisis-torn South American country.

In a statement read on state VTV television, the government said it had taken all necessary steps to re-establish production at the Goodyear plant in the industrial city of Valencia.

Goodyear abruptly closed the plant on Monday, announcing the decision in a statement posted on the factory gate that said the company had been “forced to cease operations”.

Venezuela has been in an accelerating economic freefall under President Nicolas Maduro, beset by hyperinflation and shortages that have driven hundreds of thousands of people to leave the country.

The government said it was taking over the Goodyear plant to protect its 1,160 workers and asked the attorney general's office to launch a criminal investigation into “this act of sabotage and boycott.”

The company said it has paid its workers' salaries and benefits, and would make an “additional extraordinary” payment in the coming days, and allow workers to have 10 tyres apiece.

The factory was operating at barely 20 per cent of capacity, producing 10,500 tyres a day, according to union leaders.

The government characterised Goodyear's decision as part of an “escalation of attacks” against economic reforms launched by Maduro in August.

The plant closing is part of “a file of destabilisation and continuous aggressions that the United States promotes against Venezuela”, it said.

The government has so far been unable to halt a spiral of shortages and raging hyperinflation that the International Monetary Fund has estimated will reach 10 million per cent in 2019.

Shortages of parts and tyres, combined with high prices, have resulted in the grounding of 90 per cent of Venezuela's public transportation fleet.

The government has moved to take over the holdings of other foreign companies that have halted operations.

In August, it took similar action when tyre-maker Pirelli closed its plant for lack of raw materials after 28 years in the country.


Now you can read the Jamaica Observer ePaper anytime, anywhere. The Jamaica Observer ePaper is available to you at home or at work, and is the same edition as the printed copy available at http://bit.ly/epaperlive


ADVERTISEMENT




POST A COMMENT

HOUSE RULES

1. We welcome reader comments on the top stories of the day. Some comments may be republished on the website or in the newspaper � email addresses will not be published.

2. Please understand that comments are moderated and it is not always possible to publish all that have been submitted. We will, however, try to publish comments that are representative of all received.

3. We ask that comments are civil and free of libellous or hateful material. Also please stick to the topic under discussion.

4. Please do not write in block capitals since this makes your comment hard to read.

5. Please don't use the comments to advertise. However, our advertising department can be more than accommodating if emailed: advertising@jamaicaobserver.com.

6. If readers wish to report offensive comments, suggest a correction or share a story then please email: community@jamaicaobserver.com.

7. Lastly, read our Terms and Conditions and Privacy Policy



comments powered by Disqus
ADVERTISEMENT

Flirting while in a relationship is disrespectful.
Yes
68%
No
11%
It depends
21%

ADVERTISEMENT
ADVERTISEMENT

Today's Cartoon

Click image to view full size editorial cartoon
ADVERTISEMENT