-
Advertorial
-
FOCUS
-
Guide
-
Lifestyle
-
Tech and Vogue
-
TechandScience
-
CHTF Special
-
Nanhan
-
Futian Today
-
Hit Bravo
-
Special Report
-
Junior Journalist Program
-
World Economy
-
Opinion
-
Diversions
-
Hotels
-
Movies
-
People
-
Person of the week
-
Weekend
-
Photo Highlights
-
Currency Focus
-
Kaleidoscope
-
Tech and Science
-
News Picks
-
Yes Teens
-
Fun
-
Budding Writers
-
Campus
-
Glamour
-
News
-
Digital Paper
-
Food drink
-
Majors_Forum
-
Speak Shenzhen
-
Business_Markets
-
Shopping
-
Travel
-
Restaurants
-
Hotels
-
Investment
-
Yearend Review
-
In depth
-
Leisure Highlights
-
Sports
-
World
-
QINGDAO TODAY
-
Entertainment
-
Business
-
Markets
-
Culture
-
China
-
Shenzhen
-
Important news
在线翻译:
szdaily -> World Economy
Argentine factories struggle to adapt to new policies
    2017-August-28  08:53    Shenzhen Daily

ON a recent morning, workers wearing blue shirts and black gloves assembled digital TV set-top boxes inside one of the world’s most unlikely factory towns.

Their employer, BGH SA, for nearly 40 years has been manufacturing consumer electronics in Rio Grande, a city in the chilly island province of Tierra del Fuego, located at the far southern tip of Argentina.

Like dozens of factories that have taken root in this sparsely populated land of penguins and glaciers, BGH owes its survival to government tinkering. Special tax breaks and high trade barriers have turned this remote outpost into the source of 90 percent of the air conditioners, mobile phones, TVs and microwaves sold in Argentina.

Now, it has perhaps the most to lose as President Mauricio Macri works to modernize Argentina’s closed economy. The former businessman has already lifted some import restrictions and began unwinding costly subsidies for electricity and other utilities, hitting electronics sales.

Tierra del Fuego, home to just 150,000 people, is feeling the sting. Amid a deep recession, it shed 6,000 jobs last year, a 13 percent drop that was the sharpest for any province.

Output has plunged at many of the area’s factories, including BGH. The Argentine company’s TV set-top box business has dwindled to a single assembly line, down from five a few years ago. Its laptop unit closed last year, and the air conditioner lines run a single shift per day, down from two earlier this year.

The company’s woes are emblematic of the pain rippling across Argentina’s wider industrial sector, where employment shrank by 4.6 percent, or 58,000 jobs, between November 2015 and May 2017, according to Buenos Aires consultancy Elypsis.

Former President Cristina Fernandez’s welfare spending, electricity subsidies and industry protections were applauded by many poor and working class Argentines, but the measures generated inflation and pummeled public finances.

“The government changed the rules of the game,” said Diego Teubal, executive director of BGH’s consumer division.

Emboldened by trade protections under Fernandez, the company invested in new equipment and doubled its Rio Grande workforce to nearly 2,600 people. Under Macri, BGH has slashed its payroll to just over 1,000 workers and begun importing some electronics from other countries.

(SD-Agencies)

 

深圳报业集团版权所有, 未经授权禁止复制; Copyright 2010, All Rights Reserved.
Shenzhen Daily E-mail:szdaily@szszd.com.cn