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Released July 17, 2013 | CORDOBA, ARGENTINA
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Researched by Industrial Info Resources Latin America (Cordoba, Argentina)--In Argentina, national and international companies have delayed many investment projects due to the country's ongoing financial instability, as well as restrictions related to the lack of raw material and hydrocarbons necessary for the operation of some industrial complexes.
The German firm BASF suspended a $30 million investment to construct a 60,000-metric-ton-per-year sodium methylate unit in Rosario, Santa Fe province. The unit was planned to be operational through the last quarter of 2013; however, the project is still on hold and it does not yet have a reactivation date.
State-owned company Petroquimica Rio Tercero (Buenos Aires, Argentina) had planned the expansion of its aluminum polychloride (PAC) unit at its Rio Tercero site for 2013, but it has been momentarily suspended. Complex authorities are considering the possibility of reactivating this project next year with a lower investment budget. Petroquimica Rio Tercero already had canceled the addition of a new ammonia unit in 2012, only days before the construction kick-off. This measure was due to the lack of hydrocarbons and state policies to help to revert the situation. For more information, see October 10, 2012, article - Petroquimica Rio Tercero Cancels Ammonium Unit Construction.
The present situation has forced Solvay (Buenos Aires, Argentina) to market its site in Bahia Blanca, which is currently on sale. This situation caused the suspension of a $70 million project that had been planned to add a new cogeneration unit and a $1.5 million to upgrade their flare system. For more information, see March, 29, 2013, article - Solvay Sells Shares in Latin America.
Authorities from these three companies, as well as similar and smaller firms that also have been affected by the local problems, do not expect the situation to improve in the near future. On the contrary, they see further conflicts related to the strong import and export restrictions imposed by the national government, as well as friction related to the currency controls restriction on the sale of U.S. dollars, and numerous social and labor conflicts. Facing this situation, national sources predict an increase in the local demand that paradoxically companies would not be able to satisfy without the implementation of the investments.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
The German firm BASF suspended a $30 million investment to construct a 60,000-metric-ton-per-year sodium methylate unit in Rosario, Santa Fe province. The unit was planned to be operational through the last quarter of 2013; however, the project is still on hold and it does not yet have a reactivation date.
State-owned company Petroquimica Rio Tercero (Buenos Aires, Argentina) had planned the expansion of its aluminum polychloride (PAC) unit at its Rio Tercero site for 2013, but it has been momentarily suspended. Complex authorities are considering the possibility of reactivating this project next year with a lower investment budget. Petroquimica Rio Tercero already had canceled the addition of a new ammonia unit in 2012, only days before the construction kick-off. This measure was due to the lack of hydrocarbons and state policies to help to revert the situation. For more information, see October 10, 2012, article - Petroquimica Rio Tercero Cancels Ammonium Unit Construction.
The present situation has forced Solvay (Buenos Aires, Argentina) to market its site in Bahia Blanca, which is currently on sale. This situation caused the suspension of a $70 million project that had been planned to add a new cogeneration unit and a $1.5 million to upgrade their flare system. For more information, see March, 29, 2013, article - Solvay Sells Shares in Latin America.
Authorities from these three companies, as well as similar and smaller firms that also have been affected by the local problems, do not expect the situation to improve in the near future. On the contrary, they see further conflicts related to the strong import and export restrictions imposed by the national government, as well as friction related to the currency controls restriction on the sale of U.S. dollars, and numerous social and labor conflicts. Facing this situation, national sources predict an increase in the local demand that paradoxically companies would not be able to satisfy without the implementation of the investments.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
