Fripur breaded fish. (Photo: Fripur)

After 39 years, Fripur closes its doors

Frigorífico Pesquero del Uruguay SA (Fripur) will continue operating until tomorrow, when its production will cease after 39 years’ activity.

During a meeting in the Ministry of Labour (MTSS), the Government and company representatives agreed that it must finish processing the raw material available so that the corresponding wages for the month of August can be paid, reported El Observador.

Fripur, which currently has a staff of 960 employees, presented itself for voluntary creditors’ meeting in July last year, when its debts amounted to USD 70 million.

While the company managed to reduce its liabilities, the sustainability issues worsened.

In June, it had a debt with the Uruguayan financial sector that amounted to USD 42.3 million, according to data provided by the Risk Credit Central of the Central Bank. Out of this total, some USD 40.4 million was due.

According to the attorney auditor of the company, Francisco Cobas, Fripur will cease operations "because it has no liquidity" to continue doing so.

In 90 days it will be on sale and if a buyer does not appear, there will be a "settlement per parties," according to what is established by law, Cobas added.

Those responsible for Fripur, Maximo and Alberto Fernandez, offered the Uruguayan Government to transfer the management of the company to the workers, and that alternative was the one that they aired on Thursday to the Minister of Labour and Social Security, Ernesto Murro.

But union leaders said the possibility of forming a cooperative to self-management by workers is ruled out, since it would be impractical due to the costs that it would imply to operate the firm.

"It's very difficult. The workers do not have the necessary capital to launch the company. There are costs that are very high, such as fuel, inputs. What would be good if the appearance of an investor that would take over it all: the plant and the workers," explained the union leader of Fripur, Jose Umpierrez.

Workers do not lose the hope that a buyer appears and takes over the plant.

According to data released by the National Statistics Institute (INE), the Uruguayan fishing industry recorded a drop by 46.6 per cent in production level in the second quarter of 2015.

The production decline has begun to worsen since the third quarter of last year, after the sector recorded a 3.9 per cent growth between April and June 2014.

According to INE statistics, in the first three months of this year the fall was 25.5 per cent.

The Trade Union of Seafarers and Allied Workers (SUNTMA) warned that the problem is not confined to Fripur, but the crisis extends to other fishing plants in the country.

"Now Fripur will not produce and will have to see what happens with the other companies and how the Government can work together to stop losing this competitiveness level," an entrepreneur from the sector told El Pais.

Related article:

- Fripur requests voluntary creditors’ meeting

By Analia Murias
editorial@seafood.media
www.seafood.media
 

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