There is a fact: Little by little, the “Made in Argentina” hardware companies began to collapse.
Major companies in the home appliances sector such as Electrolux and Mabe They have shown serious problems staying employed. Joining this group are historical SMEs that are also going through a difficult time, such as Longvie.
At the same time, Whirlpool announced the closure of its factory in Pilar, which includes the dismissal of 220 employees.
Hardware and Imports: Which token companies have closed or downsized
So far only this week, More than 600 jobs have entered the risk phase of the collapse in industrialization, recognized in the household appliance industry, is directly linked to the complex moment that consumption is experiencing in Argentina and Changes in income from imported electronic devices – especially from China –.
Meanwhile, marketers warn that sales have also been significantly affected by A Economic uncertainty Which continued for months and due to the complications of maintaining financing lines, at a time when the dollar did not stop making the news. The recent calm in the exchange rate, following the elections, has not yet translated into a recovery in sales.
Electrolux and Mabe: production collapse, suspension and voluntary withdrawal
The situation that has gained the greatest clarity in recent days corresponds to Electrolux and Mabe. In the first case, it implemented an extension of the rotational suspension system it had implemented after agreeing with the Mining Workers’ Union (UOM). In this case, the number of affected people increases 400 employees.
Electrolux has been promoting suspension systems at its plant in Rosario since last month. Pablo Serra, UOM’s lawyer and representative of the hardware company’s workers, said that “the situation is not new” and that this sector is going through a crisis that “has extended over time, affecting the entire white goods line and a large part of the industrial sector.”
He explained, “This is happening along the White Line. What is happening is that these big company names are causing noise, but they are not the most serious crises we have. The problem is the suppliers, who are companies that have 20 or 30 employees and do not have the same capabilities to sustain salaries without maintaining income.”
Forward, from the environment Electrolux It was expected that he would signIt will operate for three months at less than 50% of its production capacity“.
On the side Mabethe company has just created a process to reorganize its operations in Argentina. This initiative includes Withdrawals Volunteers For part of its employees and Closing its factory in Cordoba, which will be converted into a warehouse and distribution center.
The company said in a statement that it aims to “improve efficiency, respond more flexibly to market requirements and maintain production in a challenging economic context.” Specifically, Mapei will make its facility in Río Segundo, in the province of Córdoba, a distribution center, and will focus the manufacturing of kitchens, washers and dryers in Loque.
next to, It will continue to produce refrigerators in St. Louis, albeit at a limited pace. “This measure seeks to preserve local value chains, protect production continuity, and enhance competitiveness in a market open to imports,” Mabe said.
In this regard, Alejandro Iglesias, the company’s director of corporate relations, said that the decision to focus activity in Loki responds to the fact that the Rio Segundo facility was operating at 50% of its capacity, so it was appropriate.Concentrate everything in one“.
The situation in Mapei is nothing more than another confirmation of the bad moment experienced by home appliance producers in Argentina Manufacturing levels that in most cases are around 50% of installed capacity.
Whirlpool closes its huge factory in Pilar due to low consumption
Giant of Home appliances It announced that it would close its factory in Argentina. It’s about to whirlpool, Which will stop activity at its washing machine production plant located in the Fatima Industrial Park, in Pilar, Buenos Aires Province. The procedure stipulates the dismissal of 220 employees.
In this way, operators and employees from technical fields such as engineering or quality control received news of their separation, while company managers negotiated with the UOM union an exit package that included additional compensation and bonus.
The company explained that it will try to maintain a good relationship with workers “in the long term,” with the aim of bringing them back if market conditions improve.
“We have tried a more flexible and competitive model, however “Consumption slowed and imports grew significantly.”, They warned, explaining that Whirlpool would retain its business office and distribution center, which has employed between 100 and 120 people for 35 years.
It is worth noting that the Pilar factory, which is closing its doors today, was launched three years ago with the aim of producing 300,000 washing machines annually. but, Currently, the company has produced only 150,000 units, half of which are for export.
Imports affect manufacturing
In this vein, the union stated that the sector’s production landscape has worsened due to the collapse of domestic consumption and the uncontrolled opening of imports.
According to a report submitted by Apyme Santa Fe, imports of white goods in the central region of Argentina – where production is concentrated – rose significantly: in the first half, Refrigerator revenues grew 1,190% and washing machine revenues rose 5,146%, mainly from China and Brazil.to.
Sources linked to the Home Antiques Room commented on this iProfessional “There are companies that have begun to sell products produced abroad At lower prices than Argentina“And that, “There is no information on how to obtain these goods, and even the origin of these products is unknown.”
He added: “What is happening in the market is chaos. Prices are falling as a result of these imports, while… Fixed and variable costs continue to rise a lot. They added: “We are going through a business moment characterized by uncertainty, in addition to being a period of economic volatility and concerns.”
In this part they realize that There is an oversupply of home appliances due to the entry of imported appliances.But the strong decline that consumption continues to show amplifies this situation and the result is the idle capacity shown by the country’s production plants.
Voices close to the Household Industries Chamber admitted, “We see that there is a contraction. There are several things that have an impact: on January 15, for example, the tariff on mobile phones was abolished, which opened a massive entry of more products made abroad. The import was at the expense of the national industry.”
The massive entry of products manufactured abroad began to be felt from the second half of 2024. Already in that period, a survey conducted by domestic manufacturers showed that the entry of imported appliances exceeded 10,000 units per month.
In September of that year, the first known information was an entry Just over 13,700 refrigerators were shipped from Brazil and about 17,800 refrigerators from China.. At that time, Argentine production exceeded 65,000 units. Subsequently, the abolition of the PAIS tax in December was key to accelerating home appliance imports.
In February of this year, national manufacturers learned another alarming fact: in that month, in what is now assumed to be the beginning of a trend, 57,263 refrigerators were produced domestically, while, on the contrary, the import of the same appliance amounted to 68,016 units. This means, Nearly 20% more was purchased from the foreign market than was produced in Argentina.
In addition to this change, there is also partial importation encouraged by government measures. At the end of July, the ruling party made it possible to directly import white goods and other goods, as long as they were intended for private household use. This led to the introduction of stoves, ovens, dishwashers, hot water tanks and heating systems directly from Chile.
It so happens that on the other side of the Andes, these products are sold at much lower prices compared to Argentina. Retail experts point to medium-sized refrigerators and kitchens They are available at prices up to 50% below local valuesWhile washing machines, air conditioning equipment, and electric ovens are 30-40% cheaper than in our country.
Decreased consumption stimulates increased supply
The decline in demand must be added to the expansion of the supply of home appliances as another element in the set of variables affecting manufacturers. According to consulting companies such as NielsenIQ, in recent months the number of units sold It’s down 8% compared to September last year, for example.
Although the year began with a demand increase of close to 30%, the reality is that as the months passed, home appliance sales fell prey to a slowdown that was exacerbated by macroeconomic uncertainty.
Recently, the Trade Federation of Cordoba (FEDECOM) and its chambers and shopping centers have realized this Last month, home appliance sales fell by nearly 10% in the center of the country. “Consumers care about their pockets: high interest rates have limited financing for durable goods and made installments more expensive,” said Fausto Brandolin, president of the entity, regarding this figure.
This kind of view even coincides with opinions such as those of Cerra, UOM’s lawyer, who stated that “even if you offer products at 50% compared to the price a year ago, there is no money to buy.” He then concluded: “There is no incentive and no balance, wages cannot be paid and the metal worker is in the middle, maintaining his position with insufficient salaries.”
Home appliance sales began to show a noticeable slowdown starting in August, despite price stability and even deflation in some products.
During the first half of 2025, the durable goods sector benefited from exchange rate stability, a recovery in wages, increased product supply, and easier access to finance. This resulted in sales growth of up to 50% year-on-year. But the situation has changed suddenly in recent months.
“The market was shrinking little by little. “The home appliance sector saw a strong boost in the first half of the year, but that picture is starting to fade,” Eduardo Echevarria, Nielsen’s market CS director, recently announced.
Specifically, this decline in demand, coupled with the unrestricted entry of ready-made devices at a lower price, are aspects that in recent weeks have strengthened the work and production scenario that keeps the major players in national manufacturing in a state of suspense.