The investment amounted to US$52 million, characterized as the “most modern of its kind, worldwide, with cutting-edge sustainable technology,” as stated in the official announcement. In October 2022, Whirlpool inaugurated a new washing machine production facility in Pilar, Argentina. Last week, just over three years later — and two years into the presidency of libertarian economist Javier Milei — the company ceased operations and terminated its 220 employees. In the weeks preceding this moment, Paolo Rocca, a prominent figure in the nation’s industrial landscape and supplier to the Whirlpool facility, issued a cautionary note regarding the prevailing circumstances, albeit without explicitly identifying the company in question. During an industry event, he noted that imports of washing machines had increased from 5,000 to 87,000 per month, while refrigerator imports had surged from 10,000 to 80,000. “This leads many to choose between continuing production or shutting down and utilizing the commercial chain to distribute imported goods,” he stated. Whirlpool’s closure is indicative of broader trends in the industry. In the context of declining consumption, import liberalization, and a lag in the exchange rate, Argentina’s manufacturing sector is confronting a crisis that is being characterized by some as the most severe in its history.
In 2024, the inaugural year of Milei’s presidency, the industry experienced a significant contraction of 9.2%, as reported, the government’s statistics agency. In 2025, the manufacturing industry continued its steady decline, persisting year-on-year since July. Since Milei assumed office, there has been a loss of 47,000 jobs in the manufacturing sector. Significant market participants have garnered attention in recent days. This week, a Mondelez factory located in Pacheco, a multinational food manufacturer, announced the suspension of 2,300 workers for a period of 21 days. Last week, Essen, an aluminum pan manufacturer established in 1954, terminated the employment of 30 workers at its facility in Venado Tuerto and plans to begin importing a portion of its products from China. Three weeks ago, Mauro Sergio, a textile company based in Mar del Plata that commenced operations in the 1970s, suspended 175 workers from a workforce of 250 individuals at its factory. “There is a political decision to move forward with opening up imports with low tariffs, and this will undoubtedly continue to affect the entire domestic industry, especially small and medium-sized enterprises, which do not have the economic resources to carry out this transition, this transformation,” stated Daniel Rosato in an interview.
Increased imports correlate with a decline in domestic production. During his tenure of two years at the Casa Rosada, Milei implemented a range of policies that reduced costs and simplified the process for companies to import goods, as well as for individuals to acquire products from overseas. The administration implemented a reduction in tariffs and taxes on imports, raised caps, and streamlined the paperwork process. Industry leaders express concerns that, in the interim, there has been no comparable initiative aimed at enhancing the competitiveness of the Argentine industry. Some have noted that while Donald Trump, Milei’s primary international ally, suggested an increase in tariffs, the libertarian economist’s administration preferred their reduction or complete elimination. Rosato indicated that relatively elevated costs, attributed to the tax burden and an overvalued currency, render the nation’s industry less competitive in comparison to Chinese imports. He noted that the textile and metallurgical sectors have experienced the most significant impact. A report indicates that the sector experienced a year-on-year decline of 20.5% in September 2025, marking both the most significant drop and the lowest level recorded in the past decade. Formal employment in the sector has decreased to 107,000 jobs, reflecting a decline of 7,000 compared to the previous year and a reduction of 14,000 since December 2023, the month when Milei assumed office. Furthermore, manufacturing facilities across the country are operating at 37% of their capacity. “It’s a situation that demands reacting with clarity and pushing concrete measures in the short and medium term,” stated Luis Tendlarz.
FITA has put forth a proposal to the government that suggests allowing employer social security contributions to be credited against value-added tax. This initiative aims to promote job formalization, enhance the sector’s integration within the region, and facilitate the monitoring of import prices. Nevertheless, the plan has not been implemented as of now. Aldo Lo Russo, a partner in Baigorria, a 62-year-old company with 50 employees that manufactures bolts and screws used as auto parts, conveyed to the Herald that the current circumstances are “very stressful.” “It’s a very bad sign that the president and his officials don’t see the need to develop public policies for the industrial sector, as they did for the oil industry, the mining industry, or agriculture,” Lo Russo stated. He emphasized that these measures are particularly essential given that “the manufacturing industry represents the largest amount of employed labor.” ‘An unprecedented avalanche’ Every sector within the industry is currently facing challenges. From January to October, the value of toy imports experienced a 60% increase compared to the previous year, while the volume surged by 94%. Matías Furió remarked that “in one year, we went from 199 to 530 toy importers, from 9 million to 17.5 million kilos imported, and with consumption falling.” He referred to the situation as “an unprecedented avalanche. Despite the government’s alignment with the West, China now accounts for almost 95% of the volume imported.” This represents the peak concentration observed in the past two decades,” he stated. Last week, the INDEC statistics institute disclosed that Argentina’s economic activity experienced a 0.5% uptick in September relative to August. Nevertheless, the manufacturing sector experienced a decline, while finance emerged as the segment contributing most positively to the index. Carlos Rodríguez, previously part of President Javier Milei’s economic advisory team, stated on X that “productive Argentina lags far behind financial Argentina,” further asserting, “That’s no way to build a country.”