{"id":54356,"date":"2025-07-09T02:35:46","date_gmt":"2025-07-09T02:35:46","guid":{"rendered":"https:\/\/www.aplf.com\/2025\/07\/09\/uruguay-market-conditions-force-operations-at-paycueros-to-be-reduced\/"},"modified":"2025-07-09T02:36:26","modified_gmt":"2025-07-09T02:36:26","slug":"uruguay-market-conditions-force-operations-at-paycueros-to-be-reduced","status":"publish","type":"post","link":"https:\/\/www.aplf.com\/zh-hans\/2025\/07\/09\/uruguay-market-conditions-force-operations-at-paycueros-to-be-reduced\/","title":{"rendered":"Uruguay &#8211; Market Conditions force Operations at Paycueros to be Reduced"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"54356\" data-post-id=\"54356\" data-obj-id=\"54356\" class=\"elementor elementor-54356 dce-elementor-post-54356 elementor-54355\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section data-particle_enable=\"false\" data-particle-mobile-disabled=\"false\" class=\"elementor-section elementor-top-section elementor-element elementor-element-372d15d elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"372d15d\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-865f172\" data-id=\"865f172\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-35eab76 elementor-widget elementor-widget-text-editor\" data-id=\"35eab76\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p style=\"text-align: left;\">9 July 2025<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0eaeb41 elementor-widget elementor-widget-heading\" data-id=\"0eaeb41\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\"> Uruguay - Market Conditions force Operations at Paycueros to be Reduced<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d797887 elementor-widget elementor-widget-image\" data-id=\"d797887\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"600\" height=\"255\" src=\"https:\/\/www.aplf.com\/wp-content\/uploads\/2025\/07\/Union-activity-at-Paycueros.jpg\" class=\"attachment-large size-large wp-image-54340\" alt=\"\" srcset=\"https:\/\/www.aplf.com\/wp-content\/uploads\/2025\/07\/Union-activity-at-Paycueros.jpg 600w, https:\/\/www.aplf.com\/wp-content\/uploads\/2025\/07\/Union-activity-at-Paycueros-500x213.jpg 500w\" sizes=\"(max-width: 600px) 100vw, 600px\" style=\"width:100%;height:42.5%;max-width:600px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5088f8a elementor-widget elementor-widget-text-editor\" data-id=\"5088f8a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>Paycueros broke the silence: &#8220;finishing leather in Uruguay is no longer a possibility&#8221;.<\/p><p><br>The company assured that the Paysand\u00fa plant does not have the conditions today to sustain the level of activity it used to have.<\/p><p><br>After more than two months of union conflict and public denunciations of dismissals and alleged non-compliance with agreements, the representatives of Paycueros appeared for the first time before Parliament to explain their version and share the projections they have for the company from here on out.<\/p><p><br>During the session of the Senate Committee on Labor Affairs and Social Security, the director of the tannery, Diego Stein, and the legal advisor Rodrigo De Le\u00f3n assured that the Paysand\u00fa plant does not have the conditions to operate with the same capacity as in previous years, given the transformations of the global market.<\/p><p><br>De Le\u00f3n recalled that Paycueros \u2013 founded in 1948 and with uninterrupted activity since then \u2013 is the only tannery of its size located north of the R\u00edo Negro, which implies higher logistical costs, since the hides must be transported from meatpacking plants throughout the country to Paysand\u00fa and then to the port of Montevideo. Added to this is a transformation in consumption patterns at a global level, with a sustained drop in the demand for leather. <\/p><p><br>The company \u2013 part of the international Sadesa group, with operations in South America and Asia \u2013 is mainly dedicated to the tanning and retanning of bovine leathers, with a focus on the production of leathers for sports footwear.<\/p><p><br>According to the advisor, the drop in demand is due to multiple factors such as a reduction in the use of leather in clothing and footwear, the advance of synthetic materials \u2013 cheaper, easier to produce and perceived as more sustainable \u2013 and the geographical proximity of these materials to manufacturing centers. &#8220;Customers are getting closer and closer to manufacturers and manufacturers are almost all in Asia,&#8221; he said. <\/p><p><br>Stein, for his part, explained that the transfer of the business model to Southeast Asia, where the footwear and automotive upholstery industries are concentrated today, made Uruguayan production unsustainable for certain markets.<\/p><p><br>The delivery times demanded by customers, between 15 and 20 days, cannot be met from South America and according to its director, the company is forced to produce closer and closer to the end customer. This supply logic, Stein said, is incompatible with maintaining previous levels of activity at the Paysand\u00fa plant. <\/p><p><br>&#8220;We see it as practically irreversible that today, in the global context, the Paysand\u00fa Paycueros plant can finish the same amount of hides as before. I want to be very clear about that,&#8221; the director emphasized.<\/p><p><br>The hierarch acknowledged that for years the strategy was to produce in Uruguay and send inventories to their plants in Asia, which allowed them to maintain certain businesses. However, that dynamic is no longer viable. &#8220;We were sustaining production until the end of last year thinking that the situation was going to be reversed, but today we are not being able to sell that inventory we have there,&#8221; he said.  <\/p><p><br>The lack of global demand, coupled with an excess of supply, led them to reduce the volume produced and to maintain an installed overcapacity in all the group&#8217;s plants. In this context, Stein said that the finishing plant &#8220;will continue to operate, but to supply businesses in the region, not for businesses that have to be served from Asia. There should be too much of a change to go back to the way it was before.&#8221; Currently, the completion plant continues to operate, although with a very low level of activity.  <\/p><p><br>As he detailed, this situation had already been communicated to both the union and the Ministry of Labor in different instances since the beginning of the year, each time the renewal of unemployment insurance was requested. On those occasions, the company warned that it saw no prospects for a recovery in demand for the remainder of 2025. <\/p><p><br>For his part, union leader Antonio Ferreira assured the newspaper El Tel\u00e9grafo de Paysand\u00fa that the union maintains the expectation of agreeing on a &#8220;single insurance exchange&#8221; that will allow unifying the expiration dates of unemployment benefit for all workers, given the fragmented schedule that currently governs. &#8220;The next expiration dates will be July 9, August 2, August 10, August 16, August 24 and September 2. It is complicated if a solution is not found,&#8221; he warned. <\/p><p><br>The leader expressed concern about the level of activity in the different sectors of the plant. He indicated that currently work is only being done on the riverbank and the wet blue sector \u2013 which concentrate the first section of the process \u2013 while the semi-finished sector has little production and the finishing sector, almost none. &#8220;We always denounce that the last process is not done here. Today we are concerned that not even the second one is done, and that is why there are so many workers on unemployment insurance,&#8221; he said.  <\/p><p><br>According to Stein, competition for the few businesses available and customer demands in terms of location make it unfeasible to resume production at previous levels. &#8220;Today our clients ask us to be in India, in Indonesia. They tell us that the businesses are going to go to those who are in the places where they produce,&#8221; he said. <\/p><p><br>The company has a factory that has three sub-plants: the riverside, where fresh leather is received and transformed into wet blue; a second, where it is transformed into semi-finished and a third, which is the finishing plant.<\/p><p><br>In this last subplant, according to Stein, less than 50 people currently work since others have already been sent to unemployment insurance. In total, the tannery maintains about 500 employees in all its areas, and although some subplants \u2013 such as the wet blue or semi-finished \u2013 could continue with oscillations, the production of finished leather for export to Asia is no longer part of the scenario projected by the company. <\/p><p><br>&#8220;Finishing leather in Uruguay, in the medium term, is not a possibility. And even less so in the short term,&#8221; concluded the director.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section data-particle_enable=\"false\" data-particle-mobile-disabled=\"false\" class=\"elementor-section elementor-top-section elementor-element elementor-element-300ca70 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"300ca70\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-1c408ea\" data-id=\"1c408ea\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap\">\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>9 July 2025 Uruguay &#8211; Market Conditions force Ope&hellip; <a class=\"more-link\" href=\"https:\/\/www.aplf.com\/zh-hans\/2025\/07\/09\/uruguay-market-conditions-force-operations-at-paycueros-to-be-reduced\/\">\u7ee7\u7eed\u9605\u8bfb<span class=\"screen-reader-text\">Uruguay &#8211; Market Conditions force Operations at Paycueros to be Reduced<\/span><\/a><\/p>\n","protected":false},"author":6,"featured_media":54340,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[],"class_list":["post-54356","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry-news-sc","entry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Uruguay - Market Conditions force Operations at Paycueros to be Reduced - APLF Limited<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.aplf.com\/zh-hans\/2025\/07\/09\/uruguay-market-conditions-force-operations-at-paycueros-to-be-reduced\/\" \/>\n<meta property=\"og:locale\" content=\"zh_CN\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Uruguay - Market Conditions force Operations at Paycueros to be Reduced - APLF Limited\" \/>\n<meta property=\"og:description\" content=\"9 July 2025 Uruguay &#8211; 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