CUBA RUNS OUT OF METAL CONTAINERS DUE TO ENVAMETAL’S LACK OF LIQUIDITY

The Cuban economy is still unable to take off. The decades-long blockade, the economic consequences caused by the COVID-19 pandemic and the high prices the island has to face when acquiring raw materials and their transportation due to the significant increase in the price of raw materials, as well as energy.

The latest company to face this severe setback is Envametal, a company of the Grupo Empresarial de la Industria Sideromecánica (Gesime), which belongs to the Ministry of Industry. It has now had to adjust both to the new advantages brought by 2021 and to its difficulties, being an essential supplier to strategic sectors such as the non-sugar agribusiness and food industry, and reduce its activity.

Envametal has been meeting 60% of the Cuban population’s demand for two years as part of its production plans for tinplate containers, steel drums, milk jugs and other containers for food, oil, paint and water. Now it has run out of tinplate containers, steel drums, milk jugs, among other containers for food, oil, paint and water, due to its lack of liquidity.

Specifically, the production of drums (popularly known as 55-gallon tanks) did not have the opportunity to cover all the country’s demand, falling below the agreed average figure. The Cuban government is now looking for other alternatives, such as obtaining commercial credits from foreign suppliers to import the raw materials necessary for the production of metal containers, mainly for the food industry. The government has also opted to set up a flexible packaging factory in Camagüey to meet current demand on the island.