Latin America Sponsored by
Longyu Pigment
& Chemicals has
expanded its
South American
sales network by
adding Argentina
to the mix.
China’s Longyu Expands South America Network
by Charles W. Thurston
Latin America Correspondent
thurstoncw@rodmanmedia.com
China’s largest pigments manufacturer has expanded its South American sales network by adding Argentina to the
mix, choosing a moment in time when the
country is on an economic rebound.
Longyu Pigment & Chemicals, based in
Changzhou Chemical Development area, in
Jiangsu Province, has designated Buenos Aires-based Química Soraire, known for premium-quality products, as its country distributor,
through the parent’s international marketing
arm, Union Colors, of Stockport, UK. Soraire
is a member of the Asociación Tecnológica
Iberoamericana de Pinturas, Adhesivos y
Tintas (Atipat).
Longyu already has similar sales agreements
in place in Brazil, Chile, Peru, Colombia and
Venezuela. Longyu offers a wide range of pigments for the architectural and industrial market segments, as well as for the automotive
refinish market. The company is ISO9001 certified for quality management in manufacturing.
The company has previously created larger
distribution networks in India, South Africa
and Europe. With a professed production capability of 60,000 metric tons per year, the
company provides azo, phthalocyanine and
solventborne pigments under the brands
Hongying, North American and Meixu, along
with United Colors.
In Brazil, Longyu has partnered with Forscher
Solution Provider in Sao Palo; in Chile with
Adizol of Santiago; in Peru with Transquimica
Del Peru of Lima; and in Venezuela with
Distribuidora Prosequim of Caracas.
Argentina’s economy is improving rapidly,
with expectations for a 3. 7 percent increase in
GDP this year, compared with 0.8 percent last
year. Center-right President Mauricio Macri
was elected on a platform of market-friendly re-
forms. He has cut subsidies, encouraged private
investment, permitted the peso to float freely
on the exchange market, and limited consum-
er credit expansion which has dampened last
year’s inflationary 40-percent-plus consumer
price index. According to Moody’s Investors
Service, “In the six months to January 2017 in-
flation fell to less than 17 percent on an annual-
ized basis, compared to 40 percent for 2016 as
a whole.”
Foreign direct investment is a key focus of
President Macri, who has a background in real
estate development. International capital in-
flows have boosted the central bank’s official
international reserves, which stand at over $51
billion compared to less than $25 billion in
December 2015, according to Moody’s.
Macri was scheduled to meet with President
Trump at the White House in late April, following a February phone call in which the two discussed the plight of Venezuela. Trump has been
working on developing a Trump Tower Buenos
Aires project that still needs city approval.
In March, Moody’s changed the outlook on
the Government of Argentina’s rating to posi-
tive from stable and affirmed the issuer rating at
B3. The agency said, “The first driver support-
ing the positive outlook is Moody’s forecast that
Argentina’s economy will return to growth in
2017 and 2018, supported by the government’s
improved policy mix which has sought to reduce
inflation and increase investor confidence.”
Following an April Economic Forum meet-
ing in Buenos Aires, IMF deputy manag-
ing director David Lipton commented on the
Argentine economy: “There are early signs of
policy success. We expect the economy to re-
bound this year and next, and inflation to con-
tinue to decline.” CW
Source: Time Out Buenos Aires
