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French Multinational with 9,000 Employees Shuts Down Glass Wool Factory After 75 Years in Brazil, Affects 150 Workers, and Alters Operations: São Paulo Site Transitions to Distribution of Foreign-Made Materials Amid Resident Complaints and Environmental Agreements

Author profile image Caio Aviz
Written by Caio Aviz Published on 18/09/2026 at 18:41
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After 75 years of manufacturing glass wool in São Paulo, Isover shuts down its industrial lines, affecting around 150 workers and ending an era in Brazil: agreement driven by complaints from residents transforms the former factory into a distribution center, while materials previously produced in the country now arrive from foreign units and completely change the strategy of the French multinational in the Brazilian market

A factory responsible for supplying the construction sector and various segments of the Brazilian industry has closed its production lines after 75 years of operation. The decision impacted around 150 direct and indirect jobs and altered the multinational’s strategy in the country.

The unit belongs to Isover, a manufacturer of thermal and acoustic insulation materials controlled by the French group Saint-Gobain. Located in Santo Amaro, in the southern zone of São Paulo, the factory has been producing glass wool since 1951.

Aerial view of the Isover factory in Santo Amaro, São Paulo, which has stopped producing glass wool.
Aerial view of the Isover factory in Santo Amaro, São Paulo, where glass wool production was halted after 75 years.

With the shutdown, the company ceased manufacturing this material within the country. However, Isover has not abandoned the Brazilian market. The company will continue to sell its products but will now rely on materials produced overseas.

In addition, part of the former industrial complex will be transformed into a storage and distribution facility.

Isover Ceases Glass Wool Production in Brazil

The São Paulo unit manufactured rolls, panels, felts, tubes, and other solutions made from glass wool. These materials help control temperatures and reduce sound transmission.

Rolls of Isover glass wool being moved by an industrial production line.
Institutional image shows rolls of Isover glass wool passing through an industrial line, a process that has ceased to occur at the Brazilian unit.

As a result, these products are used in residential buildings, commercial structures, factories, vehicles, and large infrastructure projects.

The factory, however, has entered a definitive shutdown process. According to the established schedule, glass wool production ended on July 4, 2026.

The company also began decommissioning the equipment used in industrial processes. Among them is the melting furnace, one of the central structures of the production process.

This closure represents a significant change for its Brazilian operation. For decades, some of the materials sold by Isover came directly from the Santo Amaro unit.

Now, the brand will need to import products manufactured in other international units. Isover has a global network with approximately 60 factories located in 28 countries.

Closure Affects Around 150 Workers

When the closure process began, approximately 100 direct employees were working at the factory. An additional 50 professionals were engaged in indirect activities related to operations.

Thus, around 150 jobs were associated with the industrial complex.

The company stated it would gradually carry out the shutdown to minimize impacts on workers and their families. However, the transition from manufacturing to logistics alters both the number and profile of available positions.

A distribution center still requires professionals to receive, store, organize, and dispatch goods. However, this structure does not need the same teams required to operate furnaces, machines, and production lines.

Therefore, maintaining the address does not ensure the preservation of all jobs existing during the production phase.

Despite the local impact, the 9,000 employees mentioned in the company’s scope correspond to Isover’s global structure, not just the Brazilian factory. Saint-Gobain, the brand’s parent company, employs about 160,000 workers in its global operations.

Environmental complaints preceded the closure

The shutdown occurred following a process involving the company, local residents, and environmental agencies.

Nearby residents filed complaints related to odors, smoke, emissions, and noise. Between 2023 and 2025, the Environmental Company of the State of São Paulo also recorded infraction notices concerning the facility.

Smoke rising from the chimney of the Isover factory in Santo Amaro, located in the southern part of São Paulo.
Emission recorded at the chimney of the Isover factory in Santo Amaro during the period of complaints filed by local residents.

On December 22, 2025, Isover entered into a Conduct Adjustment Agreement with the Public Prosecutor’s Office of São Paulo and the Environmental Company of the State of São Paulo.

The agreement established a timeline for reducing and phasing out industrial activities. It also set obligations related to emission control, dismantling of facilities, and environmental monitoring of the land.

Before the closure, the company took measures to reduce the nuisances reported by the neighborhood. The factory reinforced acoustic insulation systems and implemented technologies aimed at controlling emissions.

Additionally, it halted certain activities on weekends and stopped some unloading operations at night.

The company stated it complied with applicable legislation and maintained that there was no evidence of harm to workers’ health caused by operations. Nonetheless, the agreement with public authorities mandated the gradual cessation of production.

According to information released about the Conduct Adjustment Agreement that defined the deactivation, the former plant must maintain the necessary environmental controls throughout the process.

Dismantling of the complex will continue until 2028

Although manufacturing ended in 2026, the complete closure of the industrial structure will require additional time.

Isover still needs to dismantle equipment, remove facilities, and properly manage the waste generated during demobilization. The land will also need to undergo investigations and environmental procedures.

For this reason, some stages may continue until 2028.

At the same time, the company will adapt part of the space for the new logistics operation. The complex will receive materials produced abroad and will serve as a base to supply Brazilian customers.

The change maintains Isover’s commercial presence in Brazil but puts an end to the local manufacturing of fiberglass maintained by the company.

Multinational does not completely exit Brazil

Despite the repercussions of the closure, the decision does not represent Isover or Saint-Gobain’s complete exit from the country.

The brand will continue serving customers, selling materials, and maintaining distribution activities. Saint-Gobain also controls other businesses and industrial units in Brazil.

Therefore, what has ended is Isover’s production in Santo Amaro. The company has ceased producing fiberglass in Brazil and will now supply the domestic market through imports.

Nonetheless, the closure carries significant historical weight. The factory has traversed different cycles of the construction industry, kept pace with São Paulo’s urban expansion, and remained active for approximately seventy-five years.

Now, the former industrial site begins a new phase. Where furnaces and production lines once operated, the company intends to maintain inventories and organize the distribution of goods coming from other countries.

In your opinion, transforming a Brazilian factory into a distribution center for imported products represents a necessary modernization or a concerning sign of industrial decline in the country?

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Caio Aviz

I write about the offshore market, oil and gas, job opportunities, renewable energy, mining, economy, innovation and interesting facts, technology, geopolitics, government, among other topics. Always seeking daily updates and relevant subjects, I provide rich, substantial, and meaningful content. For content suggestions and feedback, please contact me at: avizzcaio12@gmail.com.

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