They close the factory and appeal to a judge

The municipality of Ramallo closed the Ternium steel manufacturing plant and went to court for precautionary measure

02/12/2025 – 06:20 AM

The Techint group has been locked in a strong struggle with the municipality of Ramallo over taxes ever since The municipality demands a monthly fee of $1,210 million for the safety and cleanliness tax from Ternium Due to non-payment, the General Savio plant was closed.

Techint condemns the municipality’s cruelty against the company, with A 70% increase in 2025The municipality of Ramallo claims a serious financial crisis. The dispute has previously received several judicial interventions in favor of Paolo Rocca’s company.

However, city mayor Mario Politi insisted with A A new decree raises the rate by 147% by 2025 and another 60% by 2026.This prompted the Federal Court of San Nicolas to extend a precautionary measure to avoid collecting the rate and lift the closure imposed by the municipality against Ternium.

While the entire Techint group is preparing to travel The necessary judicial path to stop Ramallo is in the State Supreme Court, and the municipality is trying to sell the debt to private studios.

What is the disputed rate?

The tax at the heart of the dispute is the safety and hygiene inspection fee. The municipality demands payment Increases reaching 70% in fiscal year 2025. The municipality says partial payments or refusal to pay in full are strangling its finances.

The municipality denounces the company’s debt of one million dollars since the monthly payment of the safety and cleanliness tax for Ternum It will exceed $1 billion.

the Justice ruled in favor of Techint Groupwhich opposed the increase set by the municipality: from $172,000 to $330,000 per employee for safety and hygiene.

After the case is decided judicially, the company makes partial payments, paying only the amount it considers legal and proportional to the services provided, while justice resolves the underlying problem.

What the ruling says in favor of Techint

The Federal Court of First Instance of San Nicolas intervened in the dispute between Ternium and the municipality of Ramallo by issuing an order A precautionary measure that has been extended several times.

The ruling is based on the necessity of this Avoid irreparable damage to the company and the economywhile the fundamental question about the legality of the Safety and Cleanliness Tax (TISH) has been resolved.

The most important point in the decision was the municipality’s order to immediately lift the closure imposed on the Trinium General Savio plant.

The priority was the public, economic and social interest. The closure of an industrial plant the size of the Ternium plant (the country’s main steel producer and employer of thousands of people) would cause enormous and perhaps irreparable economic damage.Whether for the company, its employees, or the value chain.

The court also acted on the new municipal decree it had Increase the rate, and suspend its application.

What the Techint group argued

justice I consider Ternium’s arguments valid He pointed out that the increase in the average number of millionaires per month has nothing to do with municipal services.

He mentioned the Disproportionality when comparing the increase (An increase of 783% was recorded between 2024 and 2025) compared to the increase in inflation and municipal salaries (about 177% in the same period).

Ternium is authorized to continue paying fees based on the amount it considers legal and proportionate (the basic amount or previous years), while the difference between this amount and the amount requested by the municipality must be deposited in a court account as security.

Technet Group denounces the burden of taxes and fees, especially municipalities like Ramallo, It threatens the competitiveness of Argentine industry.