The national government seeks to ensure that the large investments that come to Argentina through the Large Investment Incentive Regime (RIGI) generate more opportunities for local companies. With that objective, The Ministry of Economy will bring together representatives of 41 companies linked to mining, industry and infrastructure projects with Argentine suppliersin a meeting aimed at connecting the demand for goods and services of large investors with the national supply.
The first RIGI Business Round will be held next October 29 in Rosario, Santa Feand will be aimed at companies that can join as suppliers of materials, equipment, technology, industrial services, energy and works, among other activities.
The initiative, organized by the economic portfolio led by Luis Caputo, aims to enable Argentine companies to participate in the supply chains of large investment projects, an aspect that is especially relevant for small and medium-sized industrial companies seeking to expand their markets.
According to the Ministry of Commerce, representatives of companies with projects presented under the RIGI, large contractors and mining operators will participate. The objective is to facilitate commercial contacts based on the specific purchasing and contracting needs of these companies.
The meeting also takes place in the midst of the debate about how much of the large investments announced in mining and energy can be translated into production, contracts and jobs for national companies.
From RIGI to SMEs: the business of becoming a supplier
One of the main characteristics of the projects included in the RIGI is their scale of investment and the demand for goods and services they generate during the construction and operation stages.
This opens opportunities for companies that manufacture industrial components, metal structures, equipment, supplies and technological solutions, as well as for firms dedicated to civil works, logistics, maintenance and specialized services.
The business round will seek to link this demand with suppliers throughout the country, without limiting participation to the provinces where the projects are located.
According to information previously released by the Ministry of Economy, More than 1,200 suppliers already offer goods and services to projects approved under the RIGI. The organization also indicated that 86% of the investment goes to national companies, although it did not detail in that communication the period or the composition of that percentage.
The official intention is to expand the universe of participating companies and add suppliers that currently do not have commercial ties with large investors.
For industrial SMEs, one of the challenges will be to adapt to the technical requirements, quality, scale and compliance with deadlines that these projects demand. In this sense, the meeting will allow us to learn about the hiring criteria and the supply needs of the companies.
There will also be spaces for commercial linkages between the supplier companies themselves, with the possibility of establishing associations to respond to demands of greater volume or complexity.
Rio Tinto, Vicuña and Barrick: what large mining companies look for in their suppliers
Mining will have a central place in the event, with the participation of international companies that develop projects in different Argentine provinces.
Among them will be Vicuña and Rio Tintowhose representatives will share experiences related to the development of suppliers, their integration into value chains and the criteria they use to incorporate new companies.
Commercial liaison meetings will also be held with representatives of Barrick Mining Corporation, Newmont Corporation y Eramet Eramine.
These companies will present strategic aspects of their operations and the conditions they consider to select suppliers.
The participation of large mining operators is relevant for Argentine companies interested in supplying large-scale projects, especially in segments such as metalworking, engineering, construction, transportation, equipment and industrial maintenance.
For these suppliers, the possibility of accessing contracts does not depend only on production capacity, but also on compliance with technical and safety standards, delivery times and the competitiveness of their proposals.
The Government’s call seeks to bring both parties closer together and make it easier for local firms to know the needs of the projects sooner.
Five governors will debate the future of mining
The business round agenda will also include a panel with the governors of San Juan, Mendoza, Salta, Catamarca and Jujuyfive provinces with direct interests in the development of mining activity.
The meeting will be dedicated to analyzing the main challenges and opportunities of the industry, in a context of expansion of projects linked to strategic minerals and the search for long-term investments.
In addition, representatives of business chambers and industrial entities will participate to address the productive development opportunities generated by the growth of mining.
One of the central points will be the possibility of strengthening national value chains so that investments are not limited to resource extraction, but also boost the activity of supplier companies from different regions.
In this framework, the participation of local industries appears as a relevant factor to evaluate the economic impact of the projects, along with exports and job creation.
Financing: another barrier for companies seeking new contracts
The conference will also have a panel dedicated to the financing tools available for companies interested in participating in large investment projects.
Representatives of the Guarantee System, the Capital Market and entities from the financial sector will participate.
Access to credit is one of the relevant aspects for SMEs that need to expand productive capacity, acquire equipment or finance working capital to fulfill larger scale contracts.
The proposal aims to provide financing alternatives that facilitate this participation, although no specific credit lines or preferential conditions were announced for attending companies.
The round will take place at the Rosario River Station and participation will be free. The official call established October 13 as the deadline for the registration of suppliers and October 8 for purchasing companies.
With this initiative, the Ministry of Economy seeks to expand national participation in projects linked to the RIGI. The result will depend on how many companies manage to transform commercial contacts into effective contracts and what proportion of the investments end up generating activity for local industry and services.
Source: www.perfil.com
