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News

Argentina: Arcor closes its plant in Rio Negro, the second in three months

23/08/2019 - François-Xavier Branthôme - Read in French
Activity and results seriously affected group's results for several years

"After conducting an exhaustive analysis of demand projection and associated costs with a view to 2019-2020, La Campagnola has decided not to carry out the next season of tomato processing at the plant located in Choele Choel, in the province of Río Negro."
With this brief statement, the Arcor group company announced that its plant will not continue operating, thereby ending tomato processing activities in the Central Valley of the Patagonian province.
In May, Arcor already closed another La Campagnola plant, in this case in the province of Mendoza, where 150 workers had been employed. 

 The factory closed in Choele Choel

"It should be noted that for several years, the level of activity and results at this plant seriously affected Arcor's group results. Given the situation, the company proposed several options to the employees affected, and reached agreements with all of them."

In 2006, the company was taken over by the group directed by Luis Pagani. It had 200 employees after being established in the area for 50 years, but it was undergoing a major restructuring process of its operations – with an almost total shutdown in recent months. Operations came to a final end with the closure announced today.

The demand for tomato paste will now be supplied from another factory of the company, located in the province of San Juan, where these products are also manufactured. That production is considered to be enough to cover the projected demand volume. According to the Río Negro newspaper, in the last 20 years, six tomato plants have closed, the last ones being Alco (ex Canale), Molinos Bruning and Arcor. 
 
In 2018, Arcor presented a balance sheet in the red, with important losses, something that had not happened since 2002. After a difficult first quarter, the company announced at the beginning of this month that the result of the first semester has seen positive figures of ARS 665 million.

Source : infobae.com/economia, cronista.com, baenegocios.com, rionegro.com.ar

 
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