Bridgestone Divests Venezuelan Tire Operations

May 24, 2016 at 12:23 AM

Bridgestone Corp. has agreed to divest its tiremaking operations in Venezuela to the Corimon Group, a Caracas-based paints and resins conglomerate. Terms were not disclosed.

The company deconsolidated its business in the third quarter of 2015 and says it will shift its regional investments to other Latin American markets. The sale will have no financial impact on the parent company.

Bridgestone has done business in Venezuela for 62 years. It says its former subsidiary, Bridgestone Firestone Venezolana C.A., will be operated by Corimon as Alice Neumaticos de Venezuela.

The divestiture is the latest move among many foreign companies to cut back or abandon operations in Venezuela. Numerous U.S. carmakers and supplier have struggled to maintain businesses in the country amid Venezuela's contracting economy and government-regulated exchange rates that make it difficult to obtain enough hard currency to pay for imported parts.