Automotive parts plant in Santa Fe to close and lay off 70 workers

An automotive parts plant in Pueblo Esther, Santa Fe, is set to close its operations, resulting in the dismissal of 70 workers. The facility, located approximately 25 kilometers from Rosario, specialized in manufacturing seats for a high-volume vehicle model used by an automotive terminal in Alvear.

The company has decided to replace local production with components imported from its facilities in Brazil. This shift is attributed to economic advantages in importing, a contraction in the domestic market, exchange rate conditions, and easier access for foreign products. While the company will continue to supply the necessary components for the specific vehicle model, it will no longer manufacture them within Argentina.

According to the Mechanics and Affiliates of the Automotive Transport Union (SMATA), the plant has undergone a process of structural reductions and staff cuts since 2019. At its peak, the facility employed 230 workers and produced components for various other vehicles assembled in the country. The plant's final week of industrial activity is scheduled for next week.