Uruguay’s state-owned energy company ANCAP has ended negotiations with unions over the future of its Portland cement business, opting to proceed with a restructuring plan despite ongoing labour opposition.
Talks between ANCAP, the construction union Sunca and the ANCAP workers’ federation Fancap broke down ahead of an April 20 deadline set by the Ministry of Labour and Social Security (MTSS). Unions have since declared themselves “in conflict” with the government, citing a lack of job security guarantees and what they describe as a failure to honour prior commitments made during discussions with President Yamandú Orsi.
ANCAP’s Portland cement division reported losses of US$31m in 2025, prompting the company to propose a consolidation of clinker production at its Minas plant. Under the plan, the Paysandú facility—currently operating at limited capacity—would be retained as a backup kiln, while the Manga site would continue as a distribution centre. The company has also indicated plans to transfer staff from Paysandú to Minas and offer retirement incentives.
Ancap estimates that around US$30m will be invested over the next five years to address maintenance issues at its kilns, alongside improvements in environmental performance, efficiency and safety.
Unions have rejected the plan, warning it could result in the loss of up to 180 jobs and reduce national production capacity. Fancap has instead proposed an alternative strategy involving approximately US$180m in investment through 2035, including diversification into prefabricated housing, logistics development and increased use of alternative fuels and waste heat recovery.
With positions entrenched on both sides, the future structure of Ancap’s cement operations remains uncertain.
