Ferrum’s Strategic Response to Economic Challenges in the Sanitary Device Manufacturing Sector

Ferrum, a leading manufacturer of sanitary devices, has announced a partial halt in the monthly production of these products at its Villa Rosa plant in Pilar from July 1 to July 31. This decision was made due to an “accumulated inventory level of finished products,” according to the company. 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 construction sector has been significantly impacted by a decrease in revenue, with a 37% drop in April alone and a total decline of 32% in the first four months, particularly in the ceramic sanitary ware sector, which saw a 48% decrease according to official data from INDEC. This decline has affected the demand for sanitary appliances, which has prompted Ferrum to adjust its production schedules and workforce allocations to ensure efficient operations and adaptability to the changing landscape of the construction industry.

Due to decreased demand, Ferrum had previously applied suspensions to 800 of its 1,500 employees in the taps sector for 26 days in May and June. They also planned a 9-day stoppage in July for this branch of the business. Despite these changes, Ferrum continues to adapt to evolving market conditions and aims to maintain its position as a leader in the sanitary device manufacturing sector while navigating the challenges posed by the current economic environment.

Ferrum’s decision to partially halt production at its Villa Rosa plant is not expected to disrupt its regular demand expectations or negatively impact its business operations. The company currently has enough stock of sanitary appliances on hand to meet these expectations without interruption.

In conclusion, Ferrum is taking strategic decisions that aim at maintaining efficiency and adaptability while facing market challenges caused by decreased demand due to economic factors such as COVID-19 pandemic effects on construction sector revenue.