Papelera del Sur reaffirmed plans to close its Tornquist plant during a hearing called by the Buenos Aires Labor Ministry, despite assistance proposals from provincial and municipal authorities. About 160 jobs are at risk in a town of little more than 7,500 residents where the factory operated for more than six decades.
Gustavo Lanaro, head of the paperworkers' union, has become a central figure in a negotiation that still has a narrow opening. The union secured an extension until November 12 and asked that Interpack's owners attend the next hearing so talks involve those with final decision-making power.
The company cites lack of profitability and difficulty competing with imported coated board, especially from Brazil. The plant had months of reduced activity, suspensions and lower production. Workers had already accepted temporary reductions in activity and pay to preserve jobs, according to Lanaro.
The Labor Ministry intervened on its own initiative and offered alternatives, joined by local and provincial authorities. The company maintained its position. That makes it necessary to clarify what assistance was offered, for how long, under what conditions and whether there was a credible modernization plan.
The closure has an industrial dimension beyond Tornquist. The plant produced recycled coated board for packaging and supported recycling, logistics and services. Replacing local production with imports would remove not only wages but purchases, technical capabilities and local income circulation.
It would also be simplistic to blame imports alone. The plant uses aging equipment, faces changing demand and costs, and belongs to a wider corporate group. Public debate needs data on productivity, recent investment, energy, logistics and modernization options.
Lanaro now seeks direct negotiation with the owners and possible conciliation or crisis-prevention mechanisms. Any public aid should carry conditions. If the state provides support, the company should commit to continuity, investment, production targets and job preservation.
November 12 is the next critical date. If Interpack attends and discusses restructuring, a solution may still exist. If the shutdown stands, authorities and the union will need to focus on severance, job placement and economic diversification for Tornquist.
