Two major manufacturers of automotive liquid and powder coatings announced that they will stop producing in the country. They are Axalta Coating System and Basf.
Axalta, a company of American origin, announced that it is withdrawing from the Argentine market, while Basf, from German capitals, will stop producing original automotive paints (OEM) in the country.
On Tuesday, Axalta sent his clients and suppliers a statement by email, where he explained the cessation of activities in Argentina. In other words, it closes its plant in the Buenos Aires town of Escobar and its administrative offices.
In its communication, the firm based in Philadelphia (Pennsylvania), attributed the decision to the deepening of the crisis caused by the coronavirus.
“Since the pandemic began, Axalta has actively monitored and evaluated the impact of the virus on the company, the industry, and the global economy. As the crisis evolved, Axalta took immediate action to address this impact. However, these measures were not enough, “says the statement.
According to El Cronista, the company has a presence in 130 countries and employs 13,000 workers, with more than 100,000 clients.
In Argentina, the plant covers an area of 27,000 square meters and also houses a laboratory, storage and distribution center, and administrative offices for customer service representatives.
Based on this, we regret to inform you that, due to the current economic situation in Argentina and the global impact caused by Covid-19, Axalta has been forced to cease operations in the country. Although we seek to execute all the possibilities within our reach to maintain our operations in the country, the evolution of the pandemic has been unsustainable for our business in Argentina, “the text continues.
The Escobar industrial establishment had been inaugurated in January 2017 with an investment of US $ 18 million, with the objective of producing the “range of next-generation coatings for the domestic and export manufacturing, repainting and industrial markets.”
For its part, in the second half of 2021, Basf will transfer the production of OEM automotive paints from its Tortuguitas plant, in the Buenos Aires party of Malvinas Argentinas, to if you productive of Demarchi, located in Sao Bernardo do Campo, in the state of São Paulo, Brazil.
According to the company, the Brazilian site is “the most developed in the region by technology, productive capacity and market size.”
The firm will not withdraw from the Argentine market, but will move production and supply the local market from Brazil.
“The closure of the production of if you Tortuguitas will affect approximately 60 employees, “the company said.
Basf will maintain in Tortuguitas the commercial and administrative structure and the technical structure in the automotive terminals “to guarantee the quality of the product and the service, as well as to attend to the needs of the clients.”
In addition, he clarified that the development laboratory team will continue to provide support from Argentina, both to the local client and to other South American countries.
In the center of Tortuguitas there will also be the business of automotive repainting and chemicals for personal and home care.
“This announcement does not imply that the business leaves the country, but rather the transfer of production activities to the Demarchi plant, which is the most developed site in the region in terms of technology, production capacity and market size,” said the company. .