Pirelli Ends Production at Factory in Rio Grande do Sul, Approximately 850 Employees Laid Off

The Pirelli Factory in Gravataí, in the State of Rio Grande do Sul, Produced Tires for Motorcycles and the Company Operated for 45 Years in the City

Last week, Pirelli completed the closure of the motorcycle tire factory in Gravataí, in the State of Rio Grande do Sul. The announcement of the unit’s closure was made in May 2019, when the manufacturer began a process of productive reorganization that included adapting the factory in the interior of São Paulo. With the closure, about 850 employees were laid off. See also: Building Materials Manufacturer Announces Investments of R$ 2.5 Billion and Construction of New Factory in the State of São Paulo

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The Closure of Production at the Unit in the State of Rio Grande do Sul

The announcement of the factory’s closure in Gravataí was made in May 2019, when the manufacturer began a process of productive reorganization that included adapting the Campinas factory, in the interior of the State of São Paulo, for the production of the tires that had been manufactured for 45 years on Gaúcho soil.

During this period, the government of Rio Grande do Sul tried, unsuccessfully, to persuade the Italian multinational to abandon the idea. Pirelli says it has taken measures to reduce the social impact of the factory’s closure, such as transferring workers to other operations of the group and conducting professional qualification courses for those who lost their jobs.

An agreement with the union representing the factory workers in the region also provides for financial incentives, according to years of service, and an extension of health insurance for six months to the dismissed employees.

See Also: Graphene Factory in the State of Rio Grande do Sul Becomes Target for Chinese Investments

BraCham – Brazil-China Chamber of Commerce, Industry, Service and Innovation – had its representatives on a series of technical visits in Rio Grande do Sul, where they had access to several projects that sparked the interest of the Chinese, especially in the cities of Caxias do Sul and Rondinha. The Chinese showed interest in the graphene factory of UCS (University of Caxias do Sul), at the Serra Gaúcha Regional Airport, in Vila Oliva, and at the Port of Litoral Norte, in Rondinha.

The city of Caxias do Sul drew attention for its business and technological position in Rio Grande do Sul. Therefore, it is expected to be the first Brazilian city to host the BraCham office. The headquarters will be at the Science, Technology and Innovation Park of UCS, near the graphene factory of the University, TecnoUCS with the approval of the Chinese government.

The graphene factory at UCS allows for productivity expansion of up to 5,000 kg/year, enabling UCSGraphene to provide services for national and international markets in various sectors. The applications range from electronics, coatings, and metals, to regenerative medicine. Some examples of these uses were presented to the visitors, as well as a tour of the manufacturing plant, which currently has an installed production capacity of 500 kg/year.