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Industrialists ask for one dollar at $44 to avoid more factory closures

Industrialists ask for one dollar at $44 to avoid more factory closures

In a context where the closure of the Minas de National Beer Factories (FNC) grabs attention, the Chamber of Industries of Uruguay (CIU) warned about the risk of closing numerous plants as a result of the loss of competitiveness accumulated in recent years.

The value of dollarwith a sustained exchange rate delay for 2 years, is one of the main reasons given by industrialists, along with the high costs of national production.

In this regard, the CIU highlighted how problematic it is for industries to divide the added value by 38.50 pesos and not by 44 or 45 pesos, this referring to the current dollar price versus what it would be worth if the mismatch of the dollar were corrected. 15% in real terms that you have according to the Central Bank of Uruguay (BCU).

The vice president of the House, Gabriel Murara, gave as a specific example the tripería sector as one of the most affected. “They are in a salary group with the refrigerators, but while one has approximately 15% of the cost in labor, they have 70%,” he explained and added that “it is not the same to divide the 70% of added value into the 38.50 pesos than doing it at 44 or 45 pesos, which is what the exchange rate should be.”

According to Murara, the chamber is already addressing the situation of several member companies with more than 300 employees who are analyzing the possibility of closing their doors.

The case of the FNC plant in Minas is the most recent, but already in April the auto part manufacturer Fanacif announced its closure as a result of the loss of competitiveness, further complicated by the debt of Argentine importers. Two weeks ago, the Peruvian group Glory reported that it would stop operating its dairy plant in New Helvecia.

Source: Ambito

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