Iron has decided to temporarily halt the monthly production of sanitary devices due to the “accumulated inventory level of finished product,” the company announced. Production at its Villa Rosa plant in Pilar will be paused from July 1 to July 31 inclusive. However, the industrial plant located in Avellaneda will continue to operate normally during this period, as it also produces high-end sanitary ware and FV taps.
The company assured that its current stock of sanitary appliances is enough to meet the usual expectations of demand without impacting the company’s business operations. The construction sector has been significantly affected by the drop in revenue, with a 37% collapse in April alone and a total drop of 32% in the first four months, particularly in the articles sector. Ceramic sanitary ware saw a 48% decline according to official data from INDEC.
As a result of the decrease in demand, Ferrum had implemented suspensions for 800 of its 1,500 employees in the taps sector for a total of 26 days in May and June. Additionally, a 9-day stoppage was planned for July in this branch of the business. This move came in response to the challenging market conditions and the company’s need to manage its resources effectively.
Considering the market trends and the impact on the company’s operations, Ferrum has made strategic decisions to adjust its production schedules and staffing to align with the current demand for its products. This proactive approach aims to ensure the company’s sustainability in the face of economic challenges and uncertainties in the industry. By carefully managing its resources and production capacities, Ferrum is positioning itself to adapt to changing market conditions and maintain its competitiveness in the sector.