German companies have confirmed to Secretary of Industry and Productive Development, José Ignacio de Mendiguren, that they will continue investing in Argentina during the Secretary’s trip to Germany. They also thanked the Argentine government for supporting its agricultural sector through the drought.

In Stuttgart, de Mendiguren met with authorities from the automotive company Mercedes-Benz, who confirmed their investments in Argentina, as well as initiatives to increase exports.

The Germany tour is a continuation of German chancellor Olaf Scholz’s visit to Argentina in January, Industry Secretariat sources said in a statement.

“Working with German companies allows us to be optimistic,” said de Mendiguren, adding that “apart from the difficult times we are going through, in all the meetings we had they presented us with investment plans, because they are looking at the medium and long term, and see that we have the resources and that there are opportunities for the development of technology in our country.”

The secretary’s work schedule began with a meeting with Scholz at the opening of the Hannover Industrial Fair, as well as meetings with industrial chambers, investors and federal authorities in Frankfurt.

In Ludwigshafen, Mendiguren visited the facilities of BASF, which specializes in organic chemistry and has been present in Argentina for more than 70 years.

During the meeting, the company’s senior manager of Agricultural Solutions, Matthias Kastriotis, thanked the Argentine government for supporting agricultural producers through the drought. The senior manager of Industry, Trade and International Relations, Jan von Herff, said the company “supported, supports and will support” the country, adding that they have no doubts about the country’s rapid recovery, to which they are committed. He stressed that Argentina is an important player in the current context of the company’s activities, and confirmed that BASF is planning investments for 2023.

BASF is a leading organic chemistry company with a global turnover of more than US$80 billion and 110,000 workers worldwide.

At the meeting, its authorities stressed that Argentina and the region have a great opportunity to develop the organic chemical industry at a global level, thanks to the current high production costs in Europe and its difficulty in accessing raw materials.

The firm also provides training for “farmers of the future generation”, a sector development scheme based on sustainability, the incorporation of drones, digitization, software development and its industry application with special emphasis on large areas of farmland.

In Stuttgart, de Mendiguren joined Mercedes-Benz’s Global Director of Raw Materials, Stephan Gallmeister, and the Daimler AG’s Director of Strategic Industrialization Projects, Sven Witzenhause, to go over the progress in investment projects that allowed the German company to increase its production in Argentina by 20% during 2022, as well as increasing exports.

Mercedes-Benz owns two industrial plants in the Buenos Aires suburbs, one in Virrey del Pino and another in Vicente López, and their main products are Sprinter vans and chassis for buses and trucks.

The company currently exports 70% of its production to countries in the region and the United States from the Virrey del Pino plant, where it manufactures the third generation of Sprinters. 

They also confirmed the investment that Mercedes-Benz Camiones y Buses Argentina, which belongs to the Daimler Truck AG group, announced in December last year to Economy Minister Sergio Massa. They will produce the engine of the new Sprinter OM654, which abides by the Euro 6 emission regulation.

This technological development will help expand export markets and comply with current regulations.

In the context of the growing production of electric vehicles and the supply of strategic inputs, they also discussed Argentina’s capacities to supply lithium and develop and manufacture batteries.

*With information by Télam