Ternium : Paolo Rocca: “we have to bet on innovation because it is a source of opportunities for development”

Ternium's CEO,Daniel Novegil, opened theTechint Group13th ProPymes Seminar in Buenos Aires; a program supporting the value chain improvement, which gathers 683 SMEs and suppliers. He spoke about ProPymes' recent 2014 changes and about the iron and steel industry situation worldwide.Paolo Rocca, president of Techint Group, closed the event while presenting the Tenaris Technological Development Award together with the Argentine Science and Technology Minister,Lino Barañao.

During his presentation, Novegil introduced the traditional survey to 157 customer and supplying companies that integrate the ProPymes program, which are mainly metallurgical industries. When having to round up 2014, the surveyed SMEs showed a year-on-year fall of 14% in billing; 13% on exports, and 11% in investments. Nonetheless, he mentioned that these SMEs foresee similar values for 2015: billing (+2%), investments (-2%) and exports (+6%). These factors indicate that despite the fall of 2014 on sales and exports, employment remained stable and also has a favorable projection of maintaining its current situation. "According to a study of the Fundación Observatorio Pyme, participating metallurgical industries of the ProPymes program have grown twice than others of the same type. Thus, we are talking about successful businesses", Novegil added.

To sum up, Ternium's CEO made emphasis on the development potential of Latin America as a whole. He warned about the impact of deindustrialization on the quality of employment, and also ratified that "China is a serious threat to the industrial additive-values and to the culture of the entire region". He pointed out the importance of "the integration programs of the value-chain to strengthen the industrial network", and finally suggested that "the ongoing challenge is to stimulate the investments in the industrial, energy and infrastructure area" so as to promote its growth.

Following was the partnership affiliation panel, chaired by the journalist Alfredo Leuco, where five small and medium enterprises representatives of the program shared their success experiences. Marcelo Pines, General Director of Metalúrgica Rual S.A. (automobile parts), and Eduardo Borri, Bertotto President - Boglione S.A. (oil supplies), participated on behalf of Ternium Siderar.

After the break, the historian and La Nación Newspaper journalist and columnist, Carlos Pagni, gave a presentation on the Argentine political scenario towards the election year. Martin Berardi, Ternium Siderar General Director, presented his panel.

There was also an Innovation panel, with recognized experts in the field. Following, the 10th edition of the Tenaris Award for Technological Development took place. Tassarolli S.A. was awarded the first prize, for their "Flow valve for secondary oil recovery". The second prize was given to Industrias Funes for "Technology for wool processing". Paolo Rocca, Techint Group President; Javier Martinez Álvarez, Tenaris General Director in Argentina; and the Argentine Science, Technology and Innovative Production Minister, handed over the statuettes to this year winners.

Paolo Rocca; Techint Group President, and Lino Barañao, the Argentine Science, Technology and Innovative Production Minister, were in charge of closing the event. They both coincided in the importance of innovation and assistantship between public and private sectors so as to achieve progress in favor of development. After presenting the institutional campaign videos, "There are no borders", Rocca said "if I have to think about how ProPymes has grown, how throughout these thirteen years we have made the cluster of businesses grow, that involves suppliers and customers together with all other group companies. I visualize there an Argentina that is possible, a country that grows, that works, that is ambitious to progress in every aspect within and is capable of projecting itself to the world. In my opinion, we should all be proud of what we have built together during these years".

He added that, "it's a cluster with the capacity of incorporating technology of ongoing growth, stimulated by all the projection that businesses belonging to Techint in Argentina and elsewhere have. The cluster that ProPymes represents is something that contributes and strengthens each other and all industries that take part." He also said that he sees, "significant opportunities in Argentina, for our cluster too. I see the development of the energetic field in Argentina as something that will bring up new challenges. The developing dynamics of Vaca Muerta will stimulate our cluster".

In reference to the level of investment on behalf of Techint in Argentina, he pointed out that "this year's total investment was about US$ 550 million". It was also announced that "in 2015 we will continue to invest in all fields similar magnitudes of money: in the production of seamless tubes, plain products, and in the area of oil and logistics". Finally, before answering questions of the audience, he highlighted innovation as a source of opportunities. In order to exemplify, he shared that within the area of information technology "in Argentina, we are today producing the most sophisticated systems that complete our industrial structure and I think that these are opportunities for all small and medium businesses".

ProPymes 2014

• 683 consumer and supplier SMEs integrate the program.
• 3.047 people participated in the ProPymes training plan.
• 12.486 people received ProPymes training during the last 7 years.
• 199 diagnostics and industrial assistance management were made, including supplier audits.
• Since 2003, 718 have been made.
• Since 2003, ProPymes gave US$ 49 million in credits to Ternium Siderar customer SMEs, so as to encourage investments.
• With 54 participants, it complied with the professional development program for 2 years now.
• This initiative doubles the program of Young Professionals at Techint, which makes it the pioneer in the market.
• The Technical Gene Program (El Gen Técnico) has been going on for 2 years already.
• 179 students from 10 places and 21 different businesses have already participated. The project seeks to collaborate with public technical schools, related to costumer and supplier SMEs.

ProPymes is a program established by Techint that seeks to develop its value-chain through associative work initiatives. Its main objective is to improve in competitiveness, to increase the level of exports, to make productive investments and to substitute imports, in and effective way. It was established in late 2002, and up to the moment has been put in practice for twelve years, trying to adapt its efforts to the SMEs demands, mainly within the steel industry.

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