A modern washing machine factory in Pilar, which closed just over three years after its grand opening, has become a stark emblem of Argentina’s deepening industrial crisis. The Whirlpool plant’s closure resulted in the dismissal of 220 workers. This shutdown took place amid economic policies that industry leaders argue have consistently favored imports over local production, leading to what some call the worst manufacturing decline in the country’s history.
The facility, opened with a $52 million investment in October 2022, was once seen as a leading example of sustainable manufacturing. However, its recent closure aligns with a trend of major industrial companies pulling back. This pattern has intensified during the presidency of libertarian economist Javier Milei, whose government has promoted sweeping import liberalization and deregulation as key parts of economic reform.
The impact of this policy change is evident in stark numbers. Official data from the INDEC statistics agency shows a 9.2% drop in the industrial sector in 2024, which is President Milei’s first full year in office. This decline has continued into 2025, with manufacturing output falling every month since July compared to the previous year. More importantly, around 47,000 manufacturing jobs have vanished since Milei took office, undermining a traditional base of formal employment.
The warnings from the industrial sector have become more urgent. Just weeks before the Whirlpool closure, prominent industrialist Paolo Rocca spoke at an industry event, pointing out a significant increase in imports that he claimed was hurting local production. He mentioned that monthly washing machine imports surged from 5,000 to 87,000 units, and refrigerator imports rose from 10,000 to 80,000. “This forces many to choose between continuing production or shutting down and selling imported goods,” Rocca said, describing a troubling incentive for manufacturers to close their factories.
Industry representatives argue there is a key imbalance in the government’s approach. Over the past two years, the Milei administration has introduced measures to make importing cheaper and easier, such as lowering tariffs and taxes, raising import limits and streamlining paperwork. In contrast, they say no similar effort has been made to enhance competitiveness, investment or innovation within the local production sector. This imbalance has put Argentine manufacturers at a direct disadvantage.
Observers have noted the contrast with the trade policies of President Milei’s main international ally, Donald Trump. While the former U.S. president supports increased tariffs to protect American industries, the Argentine government has taken steps to reduce or eliminate trade barriers. This contrast highlights a commitment to open markets, even as local industry shrinks.
The impact is visible across various manufacturing sectors. Recently, major companies have announced significant cutbacks. Food giant Mondelez suspended 2,300 workers at its Pacheco plant for 21 days. Essen, a historic Argentine cookware maker founded in 1954, laid off 30 workers at its Venado Tuerto factory and announced plans to import part of its product line from China. In Mar del Plata, textile firm Mauro Sergio suspended 175 of its 250 workers.
The textile industry exemplifies this contraction. A report by the Federation of Argentine Textile Industries shows that sector activity dropped 20.5% year-on-year in September 2025, marking the worst decline and lowest production level in a decade. Formal textile employment has fallen to just 107,000 jobs, a loss of 14,000 positions since Milei took office. Nationwide, textile factories are running at only 37% capacity, indicating significant economic slack and wasted potential.
“It’s a situation that demands clear action and concrete measures in the short and medium term,” said Luis Tendlarz, the federation’s president. His call for action reflects a growing demand from the production sector for policy changes that tackle the unique challenges of operating in the domestic economy.
Macroeconomic data further highlights the growing divide within the Argentine economy. While INDEC reported a 0.5% growth in overall economic activity in September compared to August, that growth was mainly driven by the finance sector. Meanwhile, the manufacturing sector continued its decline. This disparity led Carlos Rodríguez, a former economic advisor to President Milei, to remark on social media, “productive Argentina lags far behind financial Argentina.” He added, “That’s no way to build a country.”
The closed Whirlpool plant in Pilar represents more than just the fate of one factory. It symbolizes the collapse of a modern industrial promise and the human cost of rapid economic change. The 220 workers who lost their jobs join tens of thousands across the country whose lives are being reshaped by policy decisions. As imports flood the market and local consumption is stifled by austerity measures, the future of Argentina's manufacturing capacity and the supporting communities appears increasingly uncertain. The pressing question for policymakers is whether a finance-driven economy can sustain the nation without a strong and diverse production sector.