An Important Chilean lubber company leaves highly volatile Argentina

Post available in: English

Chilean timber company Masisa Wednesday announced it had liquidated all its assets in Argentina to abandon all its operations in the highly volatile neighbouring country. Sadly, it is a pattern of retreat from the Argentine marketplace of many large international investors due to its mismanaged economy and unorthodox Peronist policies, which have resulted in high levels of corruption, inflation and capital flight.

Masisa sold its share in Forestal Argentina S.A. and Masisa Forestal S.A., in addition to 72,000 hectares of land, for US$69,364,162, it was reported in Santiago. However, the sale will have a negative impact on Masisa’s equity, according to Diario Financiero, because due to exchange rate issues and the devaluation of the Argentine peso, the company recognizes losses of US$ 245 million.

“We are very satisfied with this transaction, which allows us to dispose of an asset that was not fully aligned with our strategic plan in good conditions, and at the same time to exit a complex and highly volatile market,” said Masisa’s corporate general manager Alejandro Carrillo in a statement.

The company insisted its strategic plan was to maximize profitability with higher value-added products and create new sales channels by taking advantage of new technologies.

The lumber company joins Falabella, which has reduced its presence in Argentina, Cencosud, which also wants to reduce its operations, and LATAM Airlines.

In its quarterly report published in Masisa November, the company achieved an EBITDA of US$99.1 million, which represents an increase of US$ 44.4 million over the same period the previous year.

This result corresponds to an improvement in sales margins by developing new product lines and services with greater added value.

Source: Diario Financiero

(Visited 43 times, 1 visits today)

About Gateway to South America

Established in 2006, Gateway to South America began as a single office in Buenos Aires. Since then, it has grown into a vibrant regional network, providing professional real estate marketing services to clients in Argentina, Brazil, Chile, Paraguay, Peru, and Uruguay. If you enjoy reading our news site, please share it on your social media!

Want an edge on investing in Latin America? Get our Investment News first: Join 39,400 subscribers without cost to our English, Spanish or Portuguese posts for the latest real estate news in LATAM useful for new and experienced investors. Please note, this subscription is for Investment News only, not properties for sale.

Post available in: English


Make a comment on this post

Your email address will not be published. Required fields are marked *

Real Estate and Investment News from South America
Visit us on LinkedInVisit us on FacebookVisit us on TwitterVisit us on Pinterest