1,250 Workers in Argentina Face Unemployment Due to TDI Plant Closure!

Petroquimica Rio Tercero has decided to close its toluene diisocyanate (TDI) production facility in Cordoba, Argentina, in view of the global oversupply situation, a company spokesperson has officially confirmed. Originally designed to have an annual production capacity of 28,000 tons, the plant was the only manufacturer of TDI in Argentina and in Latin America, and TDI's importance as a key raw material for polyurethane foam is self-evident.

The plant will stop production on October 14, 2024, and Rio Tercero said that 1,250 employees will be laid off as a result of the move. In a statement, the company stressed that the decision to close the TDI plant was based on two core factors: first, the global TDI industry is undergoing profound transformation, especially the rise of large factories in Asia, resulting in global oversupply, which in turn triggered a sharp decline in market prices; Second, Rio Tercero's limited capacity makes it difficult to compete effectively with large multinationals.

In the face of this adjustment, Rio Tercero has clarified its future direction, which is to transform into a "TDI trader" in order to ensure the continuity of the company's business. As TDI remains an indispensable feedstock for the company's production of the inorganic coagulant polyaluminum chloride (PAC), the Company will continue to maintain its production capacity of 58,000 tons per year of PAC. In addition, the production activities of other product lines such as sodium hypochlorite and sodium hydroxide will also remain normal, with an annual capacity of 97,500 tons and 11,000 tons, respectively.

As a subsidiary of Grupo Piero, Rio Tercero's headquarters in Buenos Aires, Argentina, this decision has undoubtedly had a profound impact on the local economy and the job market. According to local media reports, the provincial government has actively intervened and maintained close contact with the trade union, expressing deep care and support for the factory workers. However, there is no clear word on whether the government will take further intervention measures to avoid the plant closure.

It is worth noting that the US chemical giant Dow Chemical also announced that it would close its polyether polyol plant in SAN Lorenzo, Argentina, due to the economic downturn. Despite previous attempts to close the plant, the company backed down under union pressure and stricter labor laws. However, with the official closure of the Rio Tercero TDI plant and the imminent closure of the Dow Chemical polyether polyol plant, Argentina will be faced with no enterprises producing isocyanates or polyether polyols. This means that local companies producing polyurethane products will have to rely on imports to meet the demand for these key raw materials in the future.