Reports related to this article:
Plant(s): View 4 related plants in PECWeb
Released March 01, 2024 | CORDOBA, ARGENTINA
en
Researched by Industrial Info Resources (Sugar Land, Texas)--Argentine steel company Acindar, which is part of ArcelorMittal (NYSE:MT) (Luxembourg, Luxembourg) and is one of the two largest steel companies in the country, announced that it will temporarily suspend activity at its four plants in Argentina starting at the end of March, due to a decrease in sales caused by recession and high inflation. During this period, Acindar will take the opportunity to adjust production levels, grant vacations and days off, and reduce overtime. Af stoppage in industrial sectors of this magnitude is not common in the industry.
The new Argentine president, Javier Milei, announced the cut in public spending as an economic emergency measure, which has had a direct impact on public works activity and the construction sector. High inflation rates and economic instability have impacted the increase in prices of steel products, with increases of up to 100% approximately compared to October 2023. This has caused a significant drop in the demand for materials due to high costs and the stoppage in construction.
The company, which has been operating in the country for 80 years, has approximately 3,100 employees. Its primary production is long steel and profiles for sectors such as construction, agriculture and the manufacturing industry.
Facundo Velasco, institutional relations manager at Acindar, commented to the news media: "We have a very complicated macroeconomy, with high levels of inflation, which has generated a sharp decline in activity in general, and at Acindar this is reflected in a sharp drop in sales. I am talking about levels that have not been recorded in recent years, which are between 35% and 40%. At the end of last year, we knew that this was going to be complicated, but the reality we are facing at this moment is very, very complex."
Subscribers to Industrial Info's Global Market Intelligence Metals & Minerals Plant Database can click here for profiles of the affected plants.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
The new Argentine president, Javier Milei, announced the cut in public spending as an economic emergency measure, which has had a direct impact on public works activity and the construction sector. High inflation rates and economic instability have impacted the increase in prices of steel products, with increases of up to 100% approximately compared to October 2023. This has caused a significant drop in the demand for materials due to high costs and the stoppage in construction.
The company, which has been operating in the country for 80 years, has approximately 3,100 employees. Its primary production is long steel and profiles for sectors such as construction, agriculture and the manufacturing industry.
Facundo Velasco, institutional relations manager at Acindar, commented to the news media: "We have a very complicated macroeconomy, with high levels of inflation, which has generated a sharp decline in activity in general, and at Acindar this is reflected in a sharp drop in sales. I am talking about levels that have not been recorded in recent years, which are between 35% and 40%. At the end of last year, we knew that this was going to be complicated, but the reality we are facing at this moment is very, very complex."
Subscribers to Industrial Info's Global Market Intelligence Metals & Minerals Plant Database can click here for profiles of the affected plants.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
