Argentina's chemical makers seek government support

Journal Article · Wed Feb 10 04:00:00 EST 1993 · Chemical Week; (United States)

OSTI ID:6647647

Salles, F

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), Journal Name: Chemical Week; (United States) Vol. 152:5; ISSN CHWKA9; ISSN 0009-272X
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700* -- Petroleum-- Economics
Industrial
& Business Aspects
ARGENTINA
AROMATICS
CHEMICAL INDUSTRY
COOPERATION
COST
DEVELOPING COUNTRIES
ECONOMICS
ENERGY
EXPORTS
FINANCING
IMPORTS
INDUSTRIAL PLANTS
INDUSTRY
JOINT VENTURES
LATIN AMERICA
LOSSES
ORGANIC COMPOUNDS
PERFORMANCE
PETROCHEMICALS
PETROLEUM PRODUCTS
PLANNING
PRICES
SOUTH AMERICA
TARIFFS
TAXES
TRADE