Savencia Will Close Its Ilolay Plant in Santa Fe

Savencia told workers that it plans to end activity at the Ilolay factory in El Trébol on March 31st 2027. The announcement was made at a meeting on Wednesday. Production is expected to continue normally during the transition period, which the company described as lasting roughly six months.

The plant currently employs 54 people and handles approximately 130,000 litres of milk each day. Its output consists mainly of semi-hard cheeses, particularly Tybo. Savencia has not said how the milk currently sent to El Trébol would be allocated after the planned closure or whether other facilities in its network would take over the volume.

According to information attributed to the dairy workers’ union Atilra, employees have been presented with several possible arrangements. These include severance payments and voluntary departures, as well as transfers for some staff to other Savencia sites. Las Parejas and Rafaela were among the locations mentioned, although each employee’s situation is due to be considered separately.

Savencia is also offering the factory for sale. No buyer or advanced negotiations have been reported, so the company’s stated closure date remains in place unless another owner is found who can maintain the operation. A sale would leave open the possibility that dairy production could continue at El Trébol after March 2027.

The planned shutdown comes after Savencia entered the business of Sucesores de Alfredo Williner, the owner of Ilolay. The French group acquired all of Williner on April 3rd 2023. It already operated in Argentina through brands including Milkaut, Santa Rosa and Adler. In 2024, Savencia said it had progressed with the integration of Ilolay’s teams and introduced a refreshed brand identity.

If no alternative is secured, the closure will remove a facility with daily processing capacity of about 130,000 litres from Savencia’s production network. The plant will continue operating until the announced deadline, giving the company time to address the future of the employees, the factory and the milk supplied by producers in the surrounding dairy region.