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[BUSINESS] · Mexico · 9 sources

Ingenio San Pedro closure threatens 7,000 jobs in Veracruz

The San Pedro sugar mill in Lerdo de Tejada, Veracruz, announced a definitive shutdown, citing economic inviability. The company Grupo Porres said, "Después de agotar todas las alternativas a nuestro alcance, hemos tomado la difícil decisión de concluir las operaciones del Ingenio San Pedro." The closure will affect roughly 7,000 people – workers, cane growers, transporters and related businesses across municipalities such as Lerdo de Tejada, Ángel R. Cabada, Saltabarranca and San Andrés Tuxtla. Economic losses are estimated to exceed one billion pesos.

Cane producers and labor unions have called for federal and state intervention. Union leader Javier Sánchez Chávez plans meetings with President Claudia Sheinbaum and Governor Rocío Nahle. Governor Nahle announced a dialogue with the mill’s representatives and state secretaries, stating, "Nos preocupa que el ingenio San Pedro en Lerdo de Tejada haya anunciado el cierre" and that the government is exploring subsidies and financing through Nacional Financiera to keep the plant operating. The Frente de Organizaciones Sociales y Económicas del Campo, led by Rafael Lindo Chaga, warned of severe social impacts if the mill remains closed.

Producers have also declared the mill bankrupt and are seeking legal action to secure pending payments and liquidation of cane stocks. The uncertainty over who will cover these obligations has prompted calls for a legal front and possible complaints to the state prosecutor.

Entities: Armando Azamar Nato · Claudia Sheinbaum · Grupo Porres · Grupo Porres S.A. de C.V. · Ingenio San Pedro · Javier Sánchez Chávez · Lerdo de Tejada · Rafael Lindo Chaga · Rocío Nahle · Veracruz