Argentine Investor to Acquire COLEMEC, Takes on Debts Instead of Paying for Plant
Sourse: dairynews.today
The historic Uruguayan dairy cooperative COLEMEC is set to be acquired by an Argentine investor, agreeing to take on significant financial burdens while preserving jobs—a crucial move for the industry.
COLEMEC, the iconic Uruguayan dairy cooperative founded in 1932, faces a critical juncture due to a sustained decline in producers and productivity. With only 14 dairy farms supplying between 11,000 and 12,000 liters daily—an inadequate volume to sustain industrial operations employing about 30 people—a transformative decision has been made to prevent closure.
The cooperative's production assembly approved the sale of its industrial plant to Visturio S.A., a Uruguayan firm backed by Argentine capital managed by Osvaldo Spataro. The deal entails no direct payment for the plant; instead, Visturio will assume COLEMEC's considerable financial liabilities, including approximately US$ 800,000 owed to Banco República, along with debts to private banks, suppliers, and transporters. In addition to this financial relief, the buyer has committed to settling overdue payments to producers for deliveries during April to June, an obligation amounting to roughly US$ 300,000.
Maintaining the current workforce of approximately 30 employees is also a key aspect of the agreement, aiming to mitigate the social impact of this transition on local dairy industry and the regional economy of Cerro Largo. Prior to this agreement, COLEMEC had considered declaring bankruptcy or a potential takeover by Conaprole, the Uruguayan dairy giant, an option dismissed after Conaprole closed its own plant in Rivera.
The cooperative had been financing operations with funds meant for suppliers, leaving producers in debt and lacking basic inputs. Should this agreement materialize within the next 30 to 50 days, it promises new investments to revitalize production and restore the northeastern Uruguayan dairy chain. Nonetheless, the plant's ability to operate sustainably at full capacity remains contingent upon significant boosts to the remaining dairies. This rescue effort is pivotal for the dairy farmers in the Tarariras basin and the near-century-long dairy tradition in the region.
The cooperative's production assembly approved the sale of its industrial plant to Visturio S.A., a Uruguayan firm backed by Argentine capital managed by Osvaldo Spataro. The deal entails no direct payment for the plant; instead, Visturio will assume COLEMEC's considerable financial liabilities, including approximately US$ 800,000 owed to Banco República, along with debts to private banks, suppliers, and transporters. In addition to this financial relief, the buyer has committed to settling overdue payments to producers for deliveries during April to June, an obligation amounting to roughly US$ 300,000.
Maintaining the current workforce of approximately 30 employees is also a key aspect of the agreement, aiming to mitigate the social impact of this transition on local dairy industry and the regional economy of Cerro Largo. Prior to this agreement, COLEMEC had considered declaring bankruptcy or a potential takeover by Conaprole, the Uruguayan dairy giant, an option dismissed after Conaprole closed its own plant in Rivera.
The cooperative had been financing operations with funds meant for suppliers, leaving producers in debt and lacking basic inputs. Should this agreement materialize within the next 30 to 50 days, it promises new investments to revitalize production and restore the northeastern Uruguayan dairy chain. Nonetheless, the plant's ability to operate sustainably at full capacity remains contingent upon significant boosts to the remaining dairies. This rescue effort is pivotal for the dairy farmers in the Tarariras basin and the near-century-long dairy tradition in the region.
