Temporarily halting production: Ferrum’s response to the economic downturn in the ceramic sanitary ware sector

Ferrum, a leading producer of sanitary devices, has temporarily halted the monthly production of its finished products at its Villa Rosa plant in Pilar from July 1 to July 31 inclusive. The company cited an accumulated inventory level of finished product as the reason for the pause. However, its industrial plant located in Avellaneda will continue to operate normally during this period, producing high-end sanitary ware and FV taps.

The construction sector has been significantly affected by the drop in revenue due to the economic downturn caused by the COVID-19 pandemic. According to official data from INDEC, ceramic sanitary ware saw a 48% decline in April alone, with a total drop of 32% in the first four months. The taps sector was not spared either, with a decrease in demand resulting in suspensions for 800 of its 1,500 employees 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.

To address these challenges and maintain its competitiveness in the sector, Ferrum has implemented strategic decisions to adjust its production schedules and staffing to align with current demand for its products. The company’s proactive approach aims to ensure its sustainability amidst economic uncertainties and market changes. By carefully managing its resources and production capacities, Ferrum is positioning itself to adapt to changing market conditions and maintain its competitiveness in the industry.