Bom Retiro to bag a bargain
A troubled tannery in northern Argentina could soon be in the hands of Brazilian industrial group, Bom Retiro.
The company already runs 12 tanneries on home soil and could be on the verge of picking up the former Yoma tannery in the province of La Rioja for a knock-down price.
The tannery, which was the main employer in and around the town of Nonogasta, had to close last year after environmental pressure groups blamed contamination from the site for defects in new-born livestock. The owners said they could not afford to pay for a new effluent treatment plant and closed the doors.
An auction was to go ahead in November, with prospective new owners initially expected to pay more than $170 million for the facility. No buyers came forward at that price and recent reports have suggested Bom Retiro may pay as little as $6 million, while also receiving financial help from the Argentinian government to build the effluent treatment plant.
