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Major Company Shuts Down 70-Year-Old Factory in Brazil, Relocating Production and Impacting Over 100 Families

Author profile image Alisson Ficher
Written by Alisson Ficher Published on 24/06/2026 at 11:15
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Traditional Isover unit in Santo Amaro will have industrial production closed after agreement with Public Ministry and Cetesb, in a change that involves workers, old complaints from residents, and new environmental obligations for Saint-Gobain until 2028.

Isover, a brand of the Saint-Gobain Group, will cease industrial production of glass wool at its Santo Amaro unit, in the southern zone of São Paulo, by July 2026, after signing a Conduct Adjustment Agreement with the São Paulo Public Ministry and Cetesb.

Signed on December 22, 2025, the agreement establishes the gradual end of factory activities at the address and changes the function of the unit, which will stop producing insulating materials to operate only as a distribution center for the brand.

The decision affects about 100 direct employees and another 50 indirect workers, according to an estimate provided by the company to Folha de S.Paulo, as well as involving families connected for years to the routine of the factory established in the neighborhood since 1951.

To reduce the social impacts of the deactivation, the company states that it will use the period provided in the agreement to conduct the closure gradually, with measures aimed at employees directly linked to the industrial operation.

Glass wool production ends in 2026

According to the schedule defined in the TAC, Saint-Gobain must stop the production of glass wool by July 4, 2026, a stage that marks the end of Isover’s factory activity in Santo Amaro.

The definitive shutdown of the melting furnace, a central piece of equipment in the unit’s production process, is expected to occur by July 31 of the same year, according to the obligations assumed by the company.

Although the factory will cease production, the address will not be immediately abandoned nor will it mean the brand’s exit from the country, as the space will function as a distribution center after the industrial closure.

The complete demobilization of the plant should continue until 2028, during which the company will have to fulfill environmental stages, remove equipment, dispose of waste, and meet the requirements set out in the agreement signed with the responsible bodies.

In the manufacturing process, glass wool goes through stages such as fiberizing, curing in an oven, and operation of the melting furnace, which make up the production of materials used in thermal and acoustic insulation.

These products are applied in construction works, industrial installations, and different segments that use construction and infrastructure solutions, although the Santo Amaro unit will cease to participate in this production stage after the defined deadline.

Residents’ Complaints Prompted Investigation

The industrial closure occurs after complaints from surrounding residents and environmental citations related to odors, noise, and pollutant emissions, issues that led the Public Prosecutor’s Office to monitor the case.

According to Folha, the complaints presented by the neighborhood resulted in the opening of a civil inquiry by the São Paulo Public Prosecutor’s Office and inspections carried out by the Environmental Company of the State of São Paulo.

Between 2023 and 2025, the company accumulated infraction notices mainly for emitting odors perceptible beyond the property limits and for non-compliance with previous penalties applied to the operation.

Residents reported discomfort with smoke, bad smells, and noise in an area that, over the past decades, has undergone significant urban densification and has seen an increasing presence of residences near the factory.

Also targeted by pollution and noise complaints, the Saint-Gobain glass wool factory in Santo Amaro had its industrial closure reported by Veja São Paulo, which informed about the future conversion of the space into a distribution center.

Established between the company, the São Paulo Public Prosecutor’s Office, and Cetesb, the TAC also provides for the implementation of a contaminated area management plan and a daily fine of R$ 10,000 in case of non-compliance with the obligations assumed.

Company Claims Compliance with Environmental Legislation

Isover claims that it has been operating at the address for over 70 years in compliance with legislation and with sustainability and human health safety criteria established by national and international entities.

In a statement about the case, the company also declared that the decision was made after a process of dialogue with the neighborhood and with regulatory bodies involved in monitoring the unit’s activities.

Among the measures cited to improve coexistence with the community are reinforcements in acoustic insulation, investments to reduce water vapor emissions, suspension of activities on weekends, and the end of nighttime unloading.

The company also mentioned communication channels with Santo Amaro residents, in addition to actions aimed at reducing impacts in the surroundings while industrial production remains active until the deadline established in the agreement.

Until the cessation of factory activities, Saint-Gobain must maintain environmental control systems in operation, comply with emission limits, and submit periodic reports to the bodies responsible for monitoring the TAC.

The agreement also mandates investigation, diagnosis, and remediation of the soil, in addition to the dismantling of industrial equipment and the proper disposal of existing waste on-site during the demobilization process.

Workers and neighborhood feel distinct impacts

For the employees, the cessation of production represents a direct change in professional routine and in the connection with a historic factory in the capital of São Paulo, whose industrial operation spanned more than seven decades.

The company itself estimated that more than 100 families of direct employees will be impacted, not counting the indirect workers linked to the service, logistics, and support chain of the unit’s activity.

In the assessment of local residents, on the other hand, the agreement meets a long-standing demand related to the environmental and urban impacts attributed to the factory’s operation in Santo Amaro.

Councilwoman Renata Falzoni, from PSB, followed discussions on the case and told Folha that the deactivation of the factory meets a demand presented by the local population throughout the process.

Despite the labor impact, the measure does not represent the end of Isover or Saint-Gobain’s presence in Brazil, but rather the cessation of industrial activity at the plant located in the southern zone of São Paulo.

Still without a public definition regarding the final destination of the area, the land occupied by the factory will continue to be subject to the stages of the agreement, while the Public Prosecutor’s Office monitors the fulfillment of the obligations assumed by the company in the coming years.

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Alisson Ficher

A journalist who graduated in 2017 and has been active in the field since 2015, with six years of experience in print magazines, stints at free-to-air TV channels, and over 12,000 online publications. A specialist in politics, employment, economics, courses, and other topics, he is also the editor of the CPG portal. Professional registration: 0087134/SP. If you have any questions, wish to report an error, or suggest a story idea related to the topics covered on the website, please contact via email: alisson.hficher@outlook.com. We do not accept résumés!

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