Monthly Snapshots - December 2020: Argentina Edition

Ford makes 580-million-dollar investment in Argentina

The firm Ford Argentina, represented by Martín Galdeano, confirmed after meeting with President Alberto Fernández that the automotive company will be making a US $580 million investment in Argentina for their next Ford Ranger model.

The President thanked Ford on behalf of all Argentines on the social media platform Twitter, for placing their trust in Argentina. Himself and the Vice President, Cristina Kirchner, stated that the Argentine Government is committed to "making automakers once again the flagship of the national industry", as this investment will greatly promote the automotive industry and generate more employment in the country.

Manufacturing for the Ranger model will be carried out at a plant located in General Pacheco, Tigre. Ford's announcement also comes along at the same time that Toyota has decided to increase their car production, with one and a half million units being manufactured in Zárate.

CEGLA is being renewed

With 16 liquefied petroleum gas fractionation companies and a new board of directors, the Argentine Chamber of Liquefied Gas Companies (CEGLA), first established in 1966, is being renewed to strengthen and re-innovate the sector.

In an effort to make the Chamber more efficient, sustainable and relevant for Argentine consumers, these 16 LPG companies have devised new work objectives. These objectives to modernise CEGLA include proper business integration, developing new applications and joint ventures in the sector as well as repairing technical issues to meet the needs of associated companies.

The liquefied gas fractionation sector directly and indirectly employs more than 9,000 people and still supplies a market of 18 million consumers with a 100% national, environmentally friendly and sustainable fuel that is essential for some Argentine families.

CEGLA's new President, Pedro Cascales from Tradefin, highlights that LPG companies and the liquefied gas fractionation sector are integral to national industry, investing monthly more than US $750 million in capital goods.

Argentina to improve emissions target to fight climate change

Argentina's President Alberto Fernández announced a new commitment by Argentina to reduce its greenhouse gas emissions by 2030 at the Climate Ambition Summit this month. Participating virtually, the President said climate change "is a reality that is affecting humanity as a whole and requires immediate and coordinated action by leaders from around the world".

As a country, Argentina has been significantly affected by climate change as increasing temperatures of more than 1°C in Patagonia have caused almost all the glaciers to retreat. This severely impacts water availability for arid areas of Argentina that depend on that fresh water supply.

Within the new goals proposed for 2030, Argentina will limit its greenhouse gas emissions to 25.7%, a number lower than the one committed at the 2015 Paris Agreement. The President also guaranteed Argentina's commitment to a long-term, low-emission strategy to achieve carbon-neutral development by 2050.

French President Emmanuel Macron, German Chancellor Angela Merkel, British Prime Minister Boris Johnson and Chinese President Xi Jinping also participated, as well as Apple's CEO Tim Cook and various representatives of civil society and Indigenous peoples.

Argentina and China team up to renovate Argentine cargo routes

Argentina has entered an agreement with China to invest in Argentina's railways, with companies China Railway Construction Corporations Limited (CRCC), China Machinery Engineering Corporation (CMEC), and Yutong. The agreement hopes to increase the competitiveness of transported goods, strengthen the development and access of regional economies to new markets and promote international trade in the areas covered, with an energy and environmentally sustainable system.

According to the National transport Portfolio, China's investment of US $4.695 billion will generate more than 28 thousand jobs throughout Argentina and will benefit 13 provinces.

Among the planned investments is the Belgrano Cargas train tracks, expecting US $816 million. This project alone will generate 6,202 jobs and intervene along 911 km in the provinces of Jujuy, Salta, Tucumán, Córdoba, San Luis, Santa Fe, Buenos Aires and Catamarca.

Another investment is in the North of Patagonia, where US $784 million will be disbursed on a 660 km railway that will link Bahia Blanca, La Pampa, Rio Negro and Neuquén, providing 5,420 jobs. The San Martin line was also included, with an investment for US $2.6 billion that will generate 16,830 jobs.