Ecopek, a company that specializes in recycling and is part of the larger Alpek Polyester group from Mexico, has revealed plans to close its recycling plant located in Pacheco, Argentina. The announcement was made by Emilio Larrañaga, the company's director in Argentina, in a careful statement highlighting that the closure would be finalized by March 31. The plant has seen a reduction in operations over recent months and currently employs around 40 workers.

The decision to shut down the plant is attributed to a significant decline in demand for recycled materials and a pessimistic outlook regarding recovery prospects without a supportive regulatory framework that promotes the use of recycled materials, similar to regulations in other countries within the region. The closure highlights the challenges faced by the recycling industry in Argentina, which is not able to thrive under current conditions, especially when compared to stricter recycling laws in Brazil and Uruguay that enforce goals for recovery rates.

This situation underscores the critical issue of insufficient governmental incentives and regulatory frameworks in Argentina that could potentially bolster the recycling sector. The lack of such measures is deemed a significant barrier to enhancing demand for recycled materials, leaving businesses like Ecopek unable to sustain operations. The closure could impact not only the employees but also the overall progress in improving recycling practices and environmental sustainability in the region, raising concerns about future investments in recycling infrastructure.