Argentina's chemical makers seek government support
Argentina's chemical industry association, Camara de la Industria Quimica y Petroquimica (CIQYP; Buenos Aires), has started negotiations with the government aiming to stem industry-wide losses, which reached $236 million during the past 18 months. CIQYP blames the poor performance on worldwide over-supply and falling prices, which have curbed exports, and low tariffs, which have spurred imports. It is calling for higher import tariffs and export incentives. The talks will also focus on a possible bond issue that would support companies willing to restructure and modernize operations. The main factor hindering competitiveness is what CIQYP president Alejandro Achaval calls Argentinean cost, including high energy costs, high provincial and federal taxes, and high financing charges. Since 1988, the industry has cut prices by 30%, formed mergers and joint ventures, closed 11 plants and started five new ones, slashed the workforce by 27%, and engaged in the government's privatization program. Meanwhile, plans to privatize 64% of aromatics producer Petroquimica General Mosconi(PGM) were derailed when potential bidders Diamond Shamrock, Shell, and Perez Companc refused for the second time to make offers on February 2. Jorge Olazabal, planning secretary of the Ministry of Defense, says PGM will be put up for sale again by March.
- OSTI ID:
- 6647647
- Journal Information:
- Chemical Week; (United States), Vol. 152:5; ISSN 0009-272X
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
ARGENTINA
INDUSTRIAL PLANTS
CHEMICAL INDUSTRY
ECONOMICS
AROMATICS
COST
ENERGY
EXPORTS
FINANCING
IMPORTS
JOINT VENTURES
LOSSES
PERFORMANCE
PETROCHEMICALS
PLANNING
PRICES
TARIFFS
TAXES
COOPERATION
DEVELOPING COUNTRIES
INDUSTRY
LATIN AMERICA
ORGANIC COMPOUNDS
PETROLEUM PRODUCTS
SOUTH AMERICA
TRADE
020700* - Petroleum- Economics
Industrial
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