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Sawmill Closures and Staff Suspensions Deepen in Argentina

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The "leading" forestry-industry provinces in Argentina are experiencing one of the worst periods for their activity in the SME segment. The combination of rising tariffs, more expensive fuel, a sharp drop in domestic demand, and increasingly tight export margins is putting particular pressure on small and medium-sized sawmills, which started this year by reducing shifts, suspending staff, and in several cases, closing their doors.

The same trend is repeating in Santa Rosa, Corrientes, where sector chamber leaders have been warning of an accelerating deterioration that "shows no signs of recovery."

Ramón Sotelo, president of the Santa Rosa Forestry-Industrial Park and a representative of the Santa Rosa Lumber and Related Industries Association and APEFIC, is one of the voices summarizing the climate of concern.

Owner of Todo Pallets —with plants in Saladas and Santa Rosa—, he acknowledges that 2025 has been an uphill year since the first quarter.

"We started by reducing staff from 50 workers and cutting shifts. The plant in the Forestry-Industrial Park remained active thanks to exporting pallets, but with very low profitability. The other two factories, which depend on the domestic market, simply aren't recovering. There are very few orders, and we're operating at 60% capacity," he explained in the interview.

Rising Costs and Tax Pressure: "We Have No Response from the National Government"

Although the reduction of tariffs in the United States opened an opportunity and allowed for closing some contracts, Sotelo maintains that SMEs are suffocating.

"AFIP continues inspecting and pressuring for payments when activity has plummeted. We can't handle loans, the end of the year is approaching with salary increases and bonuses, and sales aren't moving. We need urgent measures and haven't received any response from the national government. I even discussed the need for financing with the National Director of Forestry-Industrial Development, Sabina Vetter, but we still have no answers," he lamented.

From AMAYADAP and APICOFOM in Misiones, similar diagnoses have been presented: a drop in domestic consumption, growing debts, unaffordable tariffs, and a real risk to the continuity of many companies and jobs.

Paralyzed Domestic Market: "We Couldn't Pass on Any Increases to Prices"

Sotelo works with major national clients, like Loma Negra, linked to construction. But both public and private works are practically paralyzed, and purchase orders are suspended.

"The national market has completely collapsed. There's no purchasing power. We're maintaining the same prices as in 2024 and absorbing all the increases in logistics, wages, services, and taxes from 2025. It's impossible to sustain an SME like this for much longer," he stated.

The situation has already left visible consequences: in the town of Santa Rosa, about 40 sawmills are operating with reduced staff and fewer hours. "Six sawmills in the Park stopped at the beginning of the year and never managed to restart. The rest are working at 60%. We don't see any signs of this changing in the coming months," he added.

At the same time, the leader expressed his concern about the wage negotiation between FAIMA and USIMRA in this critical context, which has become highly tense in recent weeks given the difficult situation for employers to increase salaries, a situation that AMAYADAP has highlighted in local media.

"With flat prices, no sales, and no refinancing, we can't absorb more increases. We don't know how we're going to pay the bonus in December. Banks aren't refinancing, and AFIP isn't offering alternatives either. It's a critical situation," he warned.

Source:canal12misiones