Savencia to close Milkaut and Ilolay plant in Santa Fe

Savencia, the French multinational that owns the Milkaut and Ilolay brands, has announced the closure of its production plant in El Trébol, Santa Fe. The facility, which has been operational since 1913, is scheduled to cease processing milk on March 31, 2027.

The company cited several operational and environmental reasons for the decision, including obsolete production lines, low processing scales compared to industry standards, the distance between the plant and milk suppliers, and environmental management requirements for exports. The company has placed the property up for sale but will continue production until the scheduled closing date.

The 54 employees currently working at the site have been offered various options, including relocation to one of the group’s other six plants in Santa Fe, voluntary retirement, early retirement, or severance pay. The Argentine Dairy Industry Workers Association (ATILRA) has confirmed the news.