Factory closure in Santa Catarina surprises city: 159 workers are laid off and decision reignites debate about the cost of production in Brazil

Written by Noel Budeguer

Published on 29/05/2026 at 11:12

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The closure of a factory in Urussanga, in the South of Santa Catarina, came as a shock to workers, residents, and merchants in the region. Dexco, one of the Brazilian giants in the construction materials sector, decided to cease operations at its ceramic tile unit in the city and concentrate production in two other operations.

The decision directly affects 159 laid-off workers, in addition to other professionals who remain temporarily for activities related to inventory and employees who are to be transferred to Criciúma. Production will be concentrated in the units of Criciúma, in Santa Catarina, and Botucatu, in São Paulo.

The case quickly gained attention because it does not only involve an internal company change. For a city with an industrial tradition, the closure of a factory of this size raises an uncomfortable question: why are large companies preferring to concentrate operations in fewer units, while smaller cities bear the brunt of layoffs?

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Closure affects workers and leaves Urussanga on alert

Facade of the Dexco, Portinari and Ceusa unit in Santa Catarina, linked to ceramic tile production; the closure of the factory in Urussanga resulted in 159 layoffs and marked the concentration of production in Criciúma and Botucatu. — Facade of the **Dexco, Portinari and Ceusa** unit in Santa Catarina, linked to **ceramic tile** production; the closure of the factory in Urussanga resulted in **159 layoffs** and marked the concentration of production in **Criciúma and Botucatu**.

The Urussanga unit was part of Dexco’s ceramic tile operations, a segment linked to the construction, renovation, and finishing market. With the closure, the city loses a significant industrial structure and sees dozens of families directly impacted.

According to information released by local media, the unit had 213 workers. Of this total, 159 were laid off, about 30 remain temporarily to support the sale of products in stock, and 24 are to be transferred to Criciúma.

In practice, the announcement affects not only the routine of the employees. A factory drives transportation, food services, commerce, outsourced services, suppliers, and small activities around it. When a plant of this type closes its doors, the impact is usually felt far beyond the company’s gates.

Company talks about efficiency, but layoffs cause discomfort

Dexco presented the decision as part of an operational reorganization. The company stated that it intends to adjust its industrial structure, increase asset efficiency, improve productivity, and concentrate production in units considered more strategic.

This type of justification is common in the corporate world, but it often causes discomfort when accompanied by hundreds of people directly or indirectly affected. For the market, the word is efficiency. For the worker, the reality is different: job loss, uncertainty, and fear of the future.

The company also stated that the closure of the unit should not have a material impact on consolidated results. Costs related to the closure should be treated as non-recurring, meaning one-time expenses within the reorganization process.

Production moves to Criciúma and Botucatu

With the exit from Urussanga, production will be concentrated in the units of Criciúma (SC) and Botucatu (SP). The change reinforces an increasingly visible trend in the Brazilian industrial sector: fewer factories, more concentration, and a pursuit for greater production scale.

For the company, the strategy may represent a gain in competitiveness. For Urussanga, however, the outcome is different. The city loses jobs, loses economic circulation, and becomes dependent on the arrival of new investors to repurpose the structure left by the factory.

Representatives of the company met with Mayor Stela de Agostin Talamini, and the municipality began to articulate alternatives for the industrial space. The idea is to try to attract new companies and reduce the economic impact left by the closure of the unit.

Custo Brasil enters the center of the discussion

The closed unit in Urussanga was part of the ceramic coatings production, a sector that transforms slabs like those in the image into floors and finishes used in works, renovations, and properties throughout Brazil; with the closure, 159 workers were dismissed and production was concentrated in Criciúma and Botucatu. — The closed unit in **Urussanga** was part of the **ceramic coatings** production, a sector that transforms slabs like those in the image into floors and finishes used in works, renovations, and properties throughout Brazil; with the closure, **159 workers were dismissed** and production was concentrated in **Criciúma and Botucatu**.

Although Dexco officially attributed the decision to an operational reorganization, the closure occurs in an environment of intense debate about the cost of producing in Brazil. Industries face high interest rates, pressure on margins, energy costs, complex tax burdens, and uncertainties related to the transition of the tax reform.

This point is what divides opinions. On one side, companies advocate for adjustments to maintain profitability and competitiveness. On the other, workers and small towns question why the cost almost always appears in the form of layoffs, closure of units, and concentration of production.

Starting in 2026, the country will also enter an important phase of adaptation to the new consumption tax system, with CBS and IBS. Even without a direct confirmed relation to the factory closure, this environment increases the pressure on companies that need to review costs, systems, operations, and tax planning.

Government, companies, and workers: who pays the bill?

The case of Urussanga brings to the table a larger and uncomfortable discussion. When the economic environment tightens, who should pay the bill: the government, the companies, or the workers?

For many entrepreneurs, Brazil is still an expensive country to produce in, with bureaucracy, tax instability, and expensive credit. For workers, however, this discourse does not reduce the impact of losing a job overnight, especially in towns where a factory has significant weight in the local economy.

It is precisely this tension that transforms the closure of the Dexco unit into a case that goes beyond Santa Catarina. The decision reveals the clash between the business logic of efficiency and the social reality of municipalities that depend on industry to maintain income, consumption, and stability.

Factory closure in Santa Catarina surprises city: 159 workers are laid off and decision reignites debate about the cost of production in Brazil

Closure affects workers and leaves Urussanga on alert

Company talks about efficiency, but layoffs cause discomfort

Production moves to Criciúma and Botucatu

Custo Brasil enters the center of the discussion

Government, companies, and workers: who pays the bill?

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Factory closure in Santa Catarina surprises city: 159 workers are laid off and decision reignites debate about the cost of production in Brazil

Closure affects workers and leaves Urussanga on alert

Company talks about efficiency, but layoffs cause discomfort

Production moves to Criciúma and Botucatu

Custo Brasil enters the center of the discussion

Government, companies, and workers: who pays the bill?

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China is building an artificial island in the middle of the sea, covering 20 km², to construct the largest offshore airport in the world, the Dalian Jinzhouwan. This $4.3 billion project is anchored on more than 3,000 pillars embedded in the rock beneath the ocean and is scheduled to open in 2035.

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