The undersecretary of the Ministry of Industry, Energy and Mining, Walter Verri, does not believe there is time for medium or long-term projects.
The national government is not considering rescuing the deficit portland cement business of Ancap in what remains of the current administration, and no medium or long-term project is on the table as an alternative to the failed attempt to partner with a private company.
He Undersecretary of the Ministry of Industry, Energy and Mining, Walter Verriassured El Telégrafo that, from his point of view, in the remainder of the current government a similar scenario is impossible because the times are limited.
However, the state official stated that, during the current mandate of the President Luis Lacalle Pouyes, measures will continue to be adopted that allow, “at least, to reduce losses.”
On the other hand, he strictly ruled out putting into operation a third furnace as a solution to the problem, since that would require a heavy investment that would not be amortized due to the lack of market, in addition to other complementary investments required for its start-up.
In addition, Verri He pointed out that the oven purchased by Broad Front (FA) in 2014, during the management of the former president José Mujicawas never installed for the same reason.
What’s up with the Portland business?
At the end of last year, Portland cement factories in Paysandu and Mines (Lavalleja) They reported losses of more than 25 million dollars to the autonomous entity, a situation that has been going on for more than 15 years.
The high production costs required by the state company prevent it from competing with private products, which have the capacity to produce at a lower cost.
This situation leaves no other option for Ancap They have to go out to compete in the market trying to match prices with their competitors, something that generates considerable losses.
As of November 2023, Portland’s production of Ancap fell 28% year-on-year, thus continuing with an accumulated decline in tonnage of cement compared to the previous year’s records.
He president of Ancap, Alejandro Stipanicicexplained to Ambit in September of last year that the deserted tender for the association of a private company to Portland demonstrated that this business “is of no use to anyone” in the Uruguayand that “the natural conclusion of this entire process is to close the business”, since “if it were a private company, it would not have survived 20 years with losses.”
Source: Ambito
