12 June 2012 00:01 [Source: ICIS news]
BUENOS AIRES (ICIS)--Rehau will spend $7m (€5.6m) to build a polyvinyl chloride (PVC) product facility in the Argentine province of Santa Fe, a company source said.
The Germany-based company plans to develop the project near the city of Rosario.
Rehau will manufacture PVC products that are designed to replace imports in the emerging appliances and electronics sector in Argentina, particularly for the refrigerator industry.
The Argentine government is seeking to replace more imported goods with home-developed items.
Production from the Rosario facility will also be exported to other South American countries. Rehau has operations also in Bolivia, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, Uruguay and Venezuela.
In the first stage of the operation, which will be during the remaining months of 2012, the company will invest $3m to begin PVC draught excluders and rigid pieces for the production of refrigerators.
In a second stage, which will begin next year, the firm will invest the remaining $4m to make PVC items for the construction sector.
Rehau has operated in Argentina since 1994 and said the plant would create more than 60 direct jobs.
($1 = €0.80)
By Paula Krizanovic
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