He Corven Group seeks to strengthen its industrial presence in Argentina, with the expansion of national manufacturing models, through the Chinese brand Foton which it represents since 2018. The holding company operates in the country through five areas: auto parts, motorcycles, tires, automotive (cargo and passengers) and clean energy.
“Let’s increase the range of trucks we manufacture and begin production of pickupsin a investment around US$50 million in total, of which about US$25 million will be allocated to the new plant in Campanafor produce between six and seven different models“, he commented to THE NATIONLeandro Iraola, owner and president of the Corven Group.
At the moment, the brand produces the models in the country TM1, ZTruck, Aumark 614, Aumark 916 and Aumark 1016 at its plant in Caseros, all destined for the light commercial vehicle market. With the investment, it will transfer its manufacturing to the industrial center of Campana.
He The focus of the changes will be focused mainly on adding new versions for light and ultralight commercial vehicles.which have grown strongly in recent years and seek to consolidate themselves with a broader offering.
In turn, Iraola explained to this medium that he also seeks to produce pickups, although he did not specify the model. Currently, it markets in the country the Tunland G7, V7 and V9.
Regarding the progress of the works, the president of Corven added: “About 80% of the new production line in the Campana industrial park is already done. I I estimate that in six to eight months this year we will be inaugurating the new plant”.
Separately, the company is also advancing another ambitious project to increase the manufacturing of models of Chinese origin in the country. “We are working on the possibility of manufacturing Chery in Argentina, where there have already been contacts and talks for the development of the supplier network”Iraola told this medium.
The project arises after Chery representation passed to the Corven Group last yearafter more than fifteen years with Sideco Americana, a company controlled by the Socma Group (Macri company). With frequent trips to China by managers, negotiations are advancing, although still without a clear definition date.
“The idea is to focus manufacturing on SUVs and a pickup”he added. Currently, the brand sells the models Tiggo 2 Pro Max, Tiggo 4 CSH, Tiggo 7 Pro Hybrid, Tiggo 8 Pro and Arrizo 8 CSH. Regarding the pickup, it would be the Himlaa mid-size segment model that the brand registered last year at the Industrial Property Institute (INPI).
Regarding the factors that depend on the Argentine side for the project to be completed, The Group pointed out that it is necessary for “the brand to have a volume of scale to be able to produce in Argentina.”. They added that they are working on that sales volume so as not to be left with an infrastructure that does not match the patents.
The context of investing in Argentina
“I see very well many of the things that the Government does, such as having fiscal control or having incentives on the RIGI for large companies, but for me we have to create a RIGI for medium and small companies”, remarked the manager.
Iraola’s justification was that a RIGI is needed for medium-sized companies, considering that they generate many jobs. Besides, Although he highlighted the control of spending and the shrinking of the State, he noted reservations about the level of interest rateswhich – as he explained – generate distortions when analyzed in dollars.
“The problem is that the exchange rate went down and that makes “The financial cost in dollars is very high.”held.
For Iraola, The economy is going through a transition stage in which the drop in inflation coexists with a direct impact on companies and consumers. “This affects the company’s results and affects people’s pockets”he pointed out. As a correlate, he warned about a deterioration in the payment capacity: “The bad debts in our finance company went from 10% to 20%, because people do not have enough money to pay the installment.”
Even so, the businessman considered that the Government began to take note of these tensions. “It has already started to lower rates, so I think it is on a positive path”he evaluated. In parallel, he highlighted as positive the approach to economic opening and the commitment to strategic sectors such as agriculture, mining, industry and oil.
If this trend consolidates, he assured, the impact will be transferred to the demand for capital goods: “Trucks are going to sell much more because there will be more exports”.
With a medium-term view, the head of Corven estimated that Argentina could significantly expand its international insertion. “Today it exports between 80,000 and 90,000 million dollars, and in five to seven years it could reach 150,000 million,” he projected, which would imply a growth close to 50% in external sales.
