Global Courant
The US company sees “high volatility” in the economy, but its sales continue to grow.
Despite the volatility of the economy, the washing machines produced by Whirlpool in Pilar have already begun to be sold in Brazil. The first 1,000 test units were exported in March and today they reach 5,000. Quite a challenge for a plant that opened last October amid restrictions on imports, which have intensified in recent months.
“Today we commemorate that we are producing at a forced march to export, yesterday it was not significant, this month 60% of manufacturing will be export and we hope in the next quarter to reach above 70%,” said Juan Carlos Puente, president of the company in Latin America and Executive Vice President of Whirlpool Corporation.
The start of exportation is a milestone for the US-based company, which seeks to be the largest exporter of household appliances in Argentina and competes with Mexico’s Mabe. In this case, with a front-loading washing machine, a high-end product manufactured by 250 employees and required an investment of US$52 million in Pilar.
The bet is to add a second shift of 150 people in July and export US$50 million in 2023. The strategy is to generate foreign currency to import refrigerators from Brazil and replace inputs with local manufacturers, such as Ternium (Techint) steel. In this way, it seeks to overcome the instability generated by high inflation, the exchange rate gap and the shortage of foreign currency.
“This investment adds one more plant to the company’s global manufacturing platform. Argentina is highly volatile and having local suppliers is critical to face costs, geopolitical tensions favored investments in Latin America,” explained Puente, who has been in charge since April of the region, after covering different positions in Europe, Africa and Mexico.
As the company accesses currencies at official value in 180 days, managers are now evaluating the possibility of using yuan to import components from China in a shorter period of time. “We are evaluating if it suits us,” said the Mexican executive. A fact that reveals the interest aroused by the swap that has just been renewed for 3 years. Even in flagship US companies.
The home appliance maker received a $1 billion state credit in March and now awaits a temporary import certificate. This regime will allow you to acquire foreign capital goods to re-export finished goods, without paying import duties. Today, 50% of the components come from Brazil and China, while the rest are national.
“Shelter” effect
Despite inflation of 108% per year and uncertainty with the dollar, the company is optimistic about the domestic market. In the first quarter, it sold 16% more units than last year. The directors recognize that it is the highest level in the region, a phenomenon encouraged by the fixed quotas, but also by the savings or “refuge” of consumers in durable goods.
“In the last 24 months, people are buying a lot of white goods, we have double digits,” said Puente. The expectation is that it will continue during the elections, a time in which activity and money in circulation usually grow, although some consultants observe a cooling in April due to the latest restrictions on imports, the drought and the drop in investment.
The plant in Pilar is the firm’s most modern in the world and has the capacity to produce 300,000 units. Today, it makes washing machines every 40 seconds. It also produces kitchens and is preparing to add air conditioners. The property within the industrial park occupies 80,000 m3, of which a third is used. And they bought another 80,000 m3, as part of their investment plan.
