Rocca emphasized the need to increase productivity to face the economic slowdown and rising costs, and stressed joint growth opportunities for the value chain. Leaders from Tenaris, Exiros, and Tecpetrol participated, together with the SMEs of the program.

Despite the uncertainty that dominates the global economic scenario, the Techint Organization does not stop its growth path and continues to face unprecedented investments in order to modernize their operations, expand its production capacity and consolidate its leadership. "In 2013 we will invest a record $ 600 million," said Paolo Rocca during the closing of the 11th edition of the seminar ProPymes. The seminar was held on Tuesday 18th at the Hilton Hotel in Buenos Aires, with the presence of over 600 references of the value chain and opinion leaders. He did so accompanied by the CEO of Ternium, Daniel Novegil; the CEO of Ternium Siderar, Martin Berardi; the CEO of Tenaris in Argentina, Javier Martínez Alvarez; and Exiros's CEO, Jose Gonzalez Tornquist. "Our challenges involve betting on regional integration and increase productivity to become more competitive in a context of rising costs, and an economy that will grow, in the coming years, at a lower rate than in the past decade," he said.

Rocca presented the main operational projects being implemented by the different companies of the Group, and stressed that this expansion creates a "traction effect" that brings in opportunities for their customers and for suppliers of the SME segment. He also highlighted the need to take action in defense of the production in the region, threatened by the "predatory action of China", which exports manufactured goods in conditions of unfair competition, and thus constitutes "an obstacle to the re-industrialization of our countries." The head of the Techint Organization warned that, faced with a complex international context, metalworking companies must focus on competitiveness, which will require effort and investment in automation, scale, training, and management improvement, among other variables.

Likewise, he defined the ProPymes program as "a success story" and an inspiring model that, in fact, the Group aims to imitate in other countries at which it operates, as it "encourages the creation of a network of shared knowledge, mutual learning, and exchange of experiences on best market practices."

The Threat of Primarization

Earlier, Ternium's CEO, Daniel Novegil, had opened the meeting with an overview of the international steel industry, the balance of ProPymes in 2012, and the projections of the company. The executive presented the findings of a recent study by the Latin American Steel Association (LASA), which warns of a sustained process of deindustrialization that is reflected in a loss of share of the manufacturing sector in GDP, and a growing deficit in the manufacturing trade balance, with China amounting to 64 billion dollars, which negatively impacts on the production of the region and ends up causing the loss of 3.8 million high-quality jobs. "In a world increasingly volatile and uncertain, the deindustrialization must be reversed, recreating conditions that encourage productive investment and strengthen the value chain," he said, setting the association of Ternium and Usiminas in Brazil as an example of regional integration that helps to strengthen the steel industry in Latin America. "Our biggest challenge is to maintain relevant investment levels that allow us to develop and grow further in the region," said Novegil. He remarked that Siderar has invested US$ 250 million this year in Argentina, and plans to invest between 220 and 240 million in 2013, numbers well above the annual average for the period 1993-2003 (US$80 million), and 2004-2011 (US$170 million).

In outlining a summary of the results of the ProPymes Program, Novegil reviewed some indicators that reflect the success of the initiative. In 2012, they hit records of participants trained (2126) and diagnoses and support programs in industrial management (150), among other milestones. Besides, he anticipated some of the objectives for 2013, among which the launch of the Young Professionals program for companies in the value chain and the extension of the professionalization course for family firms stand out. The latter was one of the most valued activities of 2012. "The success of our customers and suppliers is our success," he sentenced.

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