The Edding factory is closed: it is more profitable to import from Germany

The decision, said the spokesman for the company, was taken by the collapse of sales due to falling demand in the last four years: the decrease in marketing has reached 50%.

For this reason, the plant had been operating at 25% of installed capacity for two years, resulting in a greater increase in fixed costs this could not be covered by the net profitability of the production itself.

The German factory located in San Juan was inaugurated in 2000 as part of an expansion plan that led to the opening of production centers also in Italy and Greece, and a year later in France and Turkey.

"In 2008, we were competitive and could export, and today, manufacturing a product in Argentina is 90% more expensive than making it in Germany," added Edding's commercial director, Pablo González. BAE Business.

The chief financial officer of the company, Leonardo Rosas, said that "the debacle began four years ago: high costs, inflation, dollar volatility, high tax burden, high interest rates, product revenues. Chinese ".

"The decline in sales was 50 %.Two years ago, the factory was operating at 25% of its capacity, fixed costs can not be absorbed," said the executive at the newspaper.

The factory will definitely close next week and, as a result, the 18 employees who continued to work will be fired.

The factory, which opened in 2000 and increased production in 2007 against the backdrop of a growing domestic market, had more than 60 employees and produced more than 40 million markers a year. and 240,000 units of blackboards

This plant manufactured branded products for Edding and Avant and TopBoard slates.