Rapidly worsening economic conditions are seeing huge numbers flee Venezuela to neighbouring South American countries

Rapidly worsening economic conditions are seeing huge numbers flee Venezuela to neighbouring South American countries

Pirelli says it has 'disposed' of its car tyre factory in Guacara, Venezuela and has ceased all activities in the country after 28 years.

The news of the Italian supplier's move to quit Venezuela comes as the country descends into a spiral of hyper-inflation and as an exodus of huge swathes of its population attempts to escape rapidly worsening domestic economic conditions.

Television pictures show large numbers of Venezuelans trying to flee to neighbouring Colombia, while reports have speculated inflation could reach a staggering million per cent by year end.

"Pirelli announces the disposal of its car tyre factory in Venezuela, located in the city of Guacara and all the activities held in the country," said a statement from the Italian supplier.

"The operation follows the de-consolidation of the Venezuelan subsidiary which took place on December 31, 2015 and has no financial effects on the group.

"The agreement, which calls for employment continuity, was reached with a consortium of South American entrepreneurs and the company Sommers International, in the capacity of buyer.

"Pirelli wishes to thank its collaborators and clients for its 28 years of activity in the country and wishes the new management every success."

Venezuela has vast oil reserves, but its currency is swiftly devaluing, triggering a vast flight of its population.

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