45% drop in production and 450 workers suspended

45% drop in production and 450 workers suspended
45% drop in production and 450 workers suspended

More negative news is added to economic activity, after the alarming data published by INDEC. The steel company Acindar warned of a drop greater than expectedof the Four. Five%and that is why it will make rotating stops in the production plants. Villa Constitution, rosary beads and St nicolasthus impacting the activity of 450 employees under agreement.

Communication from company sources long steel producer It occurs hours after knowing the fall in the Gross Domestic Product (GDP) during the first quarter of this year. On a year-on-year basis, The recorded decrease was 5.1% Already compared to the last quarter of 2023, the INDEC records a drop of 2.6% in a seasonally adjusted manner.

Among the components of demand, the greatest decrease was observed in the gross fixed capital formationwith -23.4% year-on-year. On the side of the activity sectors, the decreases in Construction (-19.7% yoy), Manufacturing industry (-13.7% yoy) and the activities of Financial intermediation (-13.0 i.a.).

The recession, which is already established after a drop of the GDP of the 2.5% between the third and fourth quarter of 2023 and 2.6% between the fourth quarter and first quarter of 2024, affects the ArcelorMittal group and all the sectors involved in the commercialization of its production: civil construction, oil, energy, automotive, agriculture and industry in general.

In principle, company sources confirm that shutdowns are established at the production plants. Villa Constitution, rosary beads and St nicolas. The plants are under evaluation The Tabladaprovince of Buenos Aires, and Villa MercedesSaint Louis.

Due to the reduction in the company’s activity, the Santa Fe Industrial Federation (FISFEE) held a meeting with representatives of Acindar. There, the organization expressed concern about the productive reality that does not outline a specific recovery horizon and the company explained the mechanism of suspensions and rotating stops to which it will resort for the second time.

At the end of February, Acindar had communicated its decision to stop production on four of its floors for a month, starting March 18. The measure responded to the significant decrease in sales due to the impact of the economic recession and high inflation.

The first time Acindar announced the stoppage, official sources admitted that the company has 1,400 tons of productive capacity per year in stable conditions, but in 2023 it had already dropped to 1,000 tons, while for this year a reduction to 800. However, the greater drop in sales adjusted that amount downward.

In this framework, Acindar now decides to reduce activity to reschedule production, considering an even greater decline.

According to company sources, the drop in the level of activity was more pronounced than expectedsince they estimate a drop of 45%This forces the company to adapt its production to this demand and to develop new channels for export expansion that will compensate for the decline in the domestic market.

Regarding the dates of the stops, official sources assure that “They are not the same for all plants or for all stages of the production process.”.

On the main floor, which is the Villa Constitutionthe stoppage began on June 24 and was scheduled for 3 weeks. “Then there is a schedule of stops for the three rolling mill trains, with different start dates, but it is estimated that for 7/15 The company should already be operating normally,” they clarify to this medium.

In that sense, in response to Ámbito’s consultation regarding the reported four-month stoppage, the company assures that “The figure raised by these downtimes was not discussed.”.

The stoppage, like the first time, is to adjust stocks to demand. During this period the activity of 450 workers under agreementfor up to 80% of the workload.

“Suspensions will occur in those cases in which unused vacations or free time have been enjoyed previously and within the framework of a agreement between the company and the union“, they clarify from Acindar.

However, the suspensions They will be rotating, which implies that the personnel who are eventually affected will not leave their duties for the entire duration of the stoppage. There are activities that will continue to be developed beyond the production stoppage.

They work in the company 2,600 people directly, plus others 2,000 hired.

This type of shutdown in the industry is rare and reflects the difficulties that Many companies faceespecially small and medium-sized ones, which had to implement similar measures and in some cases reduce their work teams.

Source: Ambito

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