Acindar Suspends Production Operations Due to Significant Sales Decline

Acindar, the steel manufacturing giant, a subsidiary of the ArcelorMittal group, has made the strategic decision to suspend production across its five industrial plants in Argentina. This move comes in response to a substantial decline in sales, which has been estimated to be between 30 and 50 percent in recent months. Carlos Velasco, the communications manager at Acindar, officially announced the company's resolution to "halt all activities" in the upcoming weeks, underlining the severity of the economic challenges it is currently facing.

Velasco attributes the decline in sales to the economic crisis in Argentina, marked by an alarming over 250-percent year-on-year inflation rate as of January. The International Monetary Fund projects a contraction of 2.8 percent in Argentina's economy for the current year. The planned temporary production suspension is scheduled to be in effect from March 18 to April 15, impacting all "five locations" of Acindar.

Acindar operates industrial facilities in various regions, including Rosario and Villa Constitución in the province of Santa Fe, Villa Mercedes in the province of San Luis, and San Nicolás and La Tablada in Buenos Aires Province. The primary objective of this measure is to align the company's inventory with the current level of market activity, strategically addressing the consequences of reduced demand.

Importantly, the spokesperson for Acindar emphasizes that no workforce layoffs are anticipated during this temporary production suspension. Instead, the company plans to offer its staff unused holiday time and compensatory time off as an alternative. Acindar's official website provides insights into its workforce, indicating that the company employs around 2,400 individuals and engages 3,100 contractors in Argentina.

Carlos Velasco sheds light on the prevailing economic conditions, stating, "We're in high inflation and a sharp drop in activity, and Acindar does not fall outside that context." Acindar, being one of the two major steel firms in the country, specializes in the production of long steel catering to diverse sectors such as civil construction, oil, energy, automotive, agriculture, and industry. Established in 1942 by a group of entrepreneurs, including engineer Arturo Acevedo, Acindar has played a pivotal role in shaping Argentina's industrial landscape over the decades.

The temporary production suspension at Acindar underscores the challenging economic climate in Argentina and the consequential impact on the industrial sector. The company's strategic approach to aligning production with market demand while safeguarding its workforce reflects a prudent response to the prevailing economic challenges. The broader context of economic policies and initiatives under the current administration adds complexity to the situation, highlighting the delicate balance between addressing economic issues and sustaining industrial operations.