mtgoat666
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News from Exportadora de Sal, S.A. de C.V. And Guerrero Negro
What’s going on at Exportadora de Sal, S.A. de C.V.?
https://oem.com.mx/elsudcaliforniano/local/exportadora-de-sa...
Sounds like they are not selling, and have almost a year of product in storage. Staff hours cut.
Doesn't sound very positive for the GN economy…
Woke!
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will do for you, but what together we can do for the freedom of man.”
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David K
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Didn't you hear?
The Mexican government, now in control of the salt company, raised the price of the salt beyond the customer's budget.
At least that's how I read it.
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wilderone
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"The state president indicated that between 5 and 6 million tons of salt are stagnant, "our company has not wanted to waste money, we prefer to keep
the salt that does not spoil and look for new markets that pay the price of salt, it is above 20 dollars a ton.”
Worldwide, the price of industrial salt per metric ton is 23 to 24 dollars. The Government of Mexico seeks to sell it at 26 dollars per ton, which has
stopped sales and left ESSA workers in uncertainty.
Currently, workers are no longer being compensated for working overtime, which was the highest income in their contract."
Good luck with that.
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David K
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Thanks for that info, Cindi!
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Skipjack Joe
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$20 for a ton of salt? Doesn't seem to be worth the work.
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lencho
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Quote: Originally posted by David K  | Didn't you hear?
The Mexican government, now in control of the salt company, raised the price of the salt beyond the customer's budget.
At least that's how I read it. |
Which customer are you talking about?
Per this article, the U.S. is by far the biggest importer of Mexican salt.
At that sell price per ton the shipping costs are a considerable portion of the delivered price, so even if it's sold above the average world market
price, for U.S. buyers it may be a cheaper option (due to the geographical proximity).
Of course, elevated import tariffs will skew everything up, so we may end up sourcing from India if that threat materializes.
[Edited on 1-12-2025 by lencho]
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mtgoat666
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https://www.razon.com.mx/opinion/2024/04/30/no-saben-que-hac...
Sounds like ESSA has a lot of deferred maintenance, and may have fallen apart. Salt is hard on equipment, must take a lot of maintenance to keep the
equipment running.
A years worth of production in inventory.
And oldest customer japan found a new cheaper provider in australia.
Woke!
“...ask not what your country can do for you – ask what you can do for your country.” “My fellow citizens of the world: ask not what America
will do for you, but what together we can do for the freedom of man.”
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JDCanuck
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| Quote: Originally posted by David K | Didn't you hear?
The Mexican government, now in control of the salt company, raised the price of the salt beyond the customer's budget.
At least that's how I read it. |
Can't blame the Mexican government for being unwilling to sell at a loss just to keep the customer happy. In the midst of anticipated trade wars this
article might shine some light on how complicated the present trade agreements are and who really benefits the most from them:
https://www.co-production.net/mexico-manufacturing-news/usmc...
[Edited on 1-12-2025 by JDCanuck]
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Tioloco
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Curious as to how many people are employed there from GN?
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Don Jorge
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From the original posted article, "Esta situación pone en riesgo la economía de poco más de mil familias que dependen de los empleos que genera la
Exportadora de Sal, S.A. de C.V. de manera directa e indirecta."
Over a 1000 local families directly or indirectly dependent on the biz for their livelihoods.
The article indicates it is less than a years production in inventory, not really that much for producers of any non perishable commodity.
Ask any grain grower. They will tell you more storage is more better. It is always part of any marketing plan to be able to store lots of non
perishables to weather the inevitable market variances.
It seems a lack of capital funding by the government to properly run such an operation is the real problem. A minimum amount of cash on hand to run
the biz year to year including deferred sales would be prudent as would a regular maintenance program on the capital investment.
Good luck to the folks of Guerrero Negro. I always liked that town and its seemingly middle class affluence. I hope the government can figure out
what it takes to run a for profit business.
�And it never failed that during the dry years the people forgot about the rich years, and during the wet years they lost all memory of the dry
years. It was always that way.�― John Steinbeck
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JDCanuck
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That last sentence says it all, Don Jorge. But perhaps it's just better if they transfer it back to private interests? Government run or heavily
subsidized industries have a history of not surviving when confronted with those that must modernize and invest to stay in business.
It does tho seem like an opportunity for some enterprising individual to build a secondary market and higher paid jobs from a centralized source of
abundant raw material and a grateful work force. Any ideas? What do the present customers do with the salt they buy? Food processing maybe? And
speaking of food, I am really missing the excellent Baja cuisine now that I'm back in the land of hamburgers and fries. The refried beans we have up
here are junk and the fresh fruit availability is almost entirely absent.
[Edited on 1-12-2025 by JDCanuck]
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surfhat
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Industrial salts are not fit for human consumption. Nothing new, I know.
Anyone know if any of the GN salt ends up on a dinner table? Maybe from the very top of those huge mountains of salt piled up on the way out to the
whale boats?
The salt does make for a very nice roadbed out to the whaleboats. Could this industrial salt be used elsewhere for roadwork? I know little,
obviously. A Saltworks tour should be considered one of these days.
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wilderone
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Yes, GN salt is packaged for sale for table salt. More than one retailer of Baja salt.
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Bwana_John
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| Quote: Originally posted by surfhat | Industrial salts are not fit for human consumption. Nothing new, I know.
Anyone know if any of the GN salt ends up on a dinner table? Maybe from the very top of those huge mountains of salt piled up on the way out to the
whale boats?
The salt does make for a very nice roadbed out to the whaleboats. Could this industrial salt be used elsewhere for roadwork? I know little,
obviously. A Saltworks tour should be considered one of these days.
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I believe the Japanese (Mitsubishi) used the salt (NaCl) to produce HCl (Hydrochloric acid) for industrial purposes.
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cupcake
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I walked through the 'company town' at GN in mid-2024. It seemed to be alive with most, if not all, houses occupied. It is a fairly extensive area.
Presumably all these occupants are still employed at the Salt Works?
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rts551
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As far as I am aware the salt works have always been owned 51% Mexican government and 49% Mitsubishi.
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Don Jorge
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| Quote: Originally posted by rts551 | | As far as I am aware the salt works have always been owned 51% Mexican government and 49% Mitsubishi. |
From the OPs original linked article:
"PASÓ A MANOS DE LA NACIÓN
Con un total de mil 500 millones de pesos, el presidente de la República, Andrés Manuel López Obrador, formalizó el 24 de febrero de 2024, la
compra del 49 por ciento de las acciones de Exportadora de Sal S.A. de C.V. (ESSA) a la empresa japonesa Mitsubishi Corporation, asumiendo la gestión
total de la empresa, el 51% de las acciones ya era propiedad del gobierno mexicano."
In February 2024 the Mexican government bought Mitsubishi's remaining 49%, giving Mexico 100% ownership.
My 2 cents: Labor and Transportation costs have increased and aging equipment is long overdue for replacement. Markets have become more competitive
and export demand has eroded as USA domestic salt supplies are adequate in normal snow event years. I'm guessing Mitsubishi was more than happy to
get out now.
41% of all salt used in the USA is for rock salt, NaCl, for use on roads in the winter time. 2023 road salt use was estimated at 41 million tons.
Again, good luck to Guerrero Negro.
�And it never failed that during the dry years the people forgot about the rich years, and during the wet years they lost all memory of the dry
years. It was always that way.�― John Steinbeck
"All models are wrong, but some are useful." George E.P. Box
"Nature bats last." Doug "Hayduke" Peac-ck
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