CARACAS, Jan 24 (Reuters) - The Venezuela division of tire maker Pirelli plans to halt its local operations for two weeks starting on Jan. 30 due to a lack of raw materials, the company said on Tuesday.
Factories in Venezuela often have to reduce or halt operations as a result of chronic raw material shortages, caused primarily by exchange controls that leave companies unable to obtain dollars.
“As of Monday, Jan. 30, there will be a two week recess in activities,” the company said in a statement, adding it will restart production on Feb. 13 using raw materials provided by another division of Pirelli.
Pirelli, which was founded in Italy but acquired by China National Chemical Corp in 2015, said it had been able to obtain raw materials last year via a bilateral Venezuela-China fund.
Venezuela has borrowed more than $50 billion from China through a decade-long oil-for-loans arrangement that often requires Caracas to contract with Chinese firms.
Reporting by Brian Ellsworth; Editing by Tom Brown