A unit of Argentina’s Vicentin group, Algodonera Avellaneda, has agreed to a deal that could restart operations at its cotton processing plants, months after halting activity amid broader financial uncertainty. The company will process cotton supplied by Nueva Vicentin Argentina SA, the entity formed after a bailout of the original Vicentin cereal exporter and now controlled by the Grassi SA group, under a ginning agreement at facilities in northern Argentina.
The agreement, which requires approval from Judge Fabián Lorenzini overseeing Algodonera Avellaneda’s preventative bankruptcy proceedings, outlines a minimum commitment of four cotton seasons. It offers a potential pathway to reactivate industrial infrastructure that has been idle for months. The deal centers on Algodonera Avellaneda providing industrial ginning services – separating cotton fiber from seed and other byproducts – for Nueva Vicentin.
According to documents reviewed by this news organization, the contract details the receipt of cotton “in bulk by truck, in rolls of cotton and/or cotton modules” at the plants, processing it, storing the resulting products, and loading them for dispatch. The agreement stipulates minimum processing volumes designed to sustain plant operations. Specifically, Algodonera Avellaneda has committed to processing a minimum of 30,000 metric tons of cotton annually at the Pinedo plant and another 30,000 metric tons at the Bandera facility, potentially reaching a total of 60,000 metric tons per year.
In addition to volume commitments, the agreement includes a provision for initial financing to cover urgent operating expenses. Nueva Vicentin will provide Algodonera Avellaneda with up to USD $300,000 to address immediate needs, including partial payment of wage and social security debts, essential service payments, and investments required to restart operations. This financial support is crucial as Algodonera Avellaneda navigates its bankruptcy proceedings.
Algodonera Avellaneda, located in the Reconquista Industrial Park in Santa Fe province, has been without activity since late September 2025, though production had already been declining due to challenges in the textile sector and increased competition from imports. The shutdown impacted 366 employees. The agreement with Nueva Vicentin represents a significant step toward potentially mitigating the impact of these difficulties and restoring some level of operational capacity.
