Unilever to close Argentine ice cream plant - Brief Article

Anglo-Dutch food and consumer goods giant Unilever is to close an ice cream plant in Argentina's north-eastern province of Santa Fe, as part of a new scheme to concentrate production in Latin America's largest economy, neighbouring Brazil. Unilever's ice cream factory is operated by a local subsidiary Kibon in the city of Villa Gobernador, which employs around 300 workers. Many firms have been encouraged to migrate to the Portuguese-speaking country over the past months, with the introduction of various incentive packages.

ADVANTAGES OF INVESTING IN BRAZIL

The attractions of investing in Brazil, which is six times larger than its southern neighbour, are not only its increased competitiveness since last year's devaluation of the Brazilian Real, but also the added appeal of lower labour costs. However, Argentines are angry over the closure and residents in the provincial city, with an unemployment rate of 24% and poverty level of 30%, have been angered by the recent move. Rodolfo Cavalieri, secretary of the Villa Gobernador Galvez city government said "We're angry with Unilever because they are going to Brazil and by leaving the country they don't support us at all."

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