Liquidation of renowned Valle del Cauca company Propal S.A. raises concerns: 'It's a hard impact for 400 workers and employment in our region'

The governor of Valle del Cauca, Dilian Francisca Toro, announced with profound sadness the liquidation of Propal S.A., a prominent company within the Carvajal Organization. The decision, approved by an extraordinary shareholders' assembly on July 31, was officially filed with the Superintendence of Companies on the same day. This move leaves approximately 400 families in a state of uncertainty and distress.

Propal cited a progressive deterioration of its financial conditions over the past three years as the primary reason for the closure. The company pointed to external factors beyond its control, including persistently low market prices, the appreciation of the Colombian peso against the dollar, and escalating production costs. These challenges were exacerbated despite the implementation of anti-dumping measures on imported goods.

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With deep sadness we received the news of the liquidation of Propal, an emblematic company of the Carvajal Organization and one of the companies that for decades contributed to the development, job creation and growth of Valle del Cauca.

Before reaching the decision to liquidate, Propal explored various alternatives to sustain its operations. These included implementing efficiency and cost-saving plans, seeking specialized consulting, searching for investors, and diversifying its business lines. However, financial and technical analyses concluded that continuing operations would only deepen losses and further erode the company's assets.

Governor Toro acknowledged Propal's decades-long contribution to the development, employment, and growth of Valle del Cauca. She recognized the Carvajal family's commitment and efforts to maintain the company, highlighting its invaluable contribution to the region's economic and social progress. The governor stressed that the closure represents a severe blow to the region, particularly for the more than 400 workers and their families who now face significant uncertainty. While they will receive their corresponding benefits, the loss of employment directly impacts household stability. Toro pledged continued efforts to foster an environment that promotes investment, business stability, and job creation in the department.

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Its closure represents a hard impact for our region and, especially, for more than 400 workers and their families, who today face great uncertainty.