Local Businesses Thriving as Multinationals Leave Argentina: Newsan’s Case”.

In recent years, there has been a trend of multinational companies leaving Argentina and local businesses taking advantage of the situation. Last year, an American multinational company sold its entire operation in the country, including the iconic brands Ariel and Magistral detergent to a local group Dreamco. This move was due to the company’s difficulty in creating value and operating in the country due to the macroeconomic environment.

However, not all multinational companies are leaving Argentina. Newsan, the electronics leader in Tierra del Fuego, has chosen to keep its operations in the country. The company is known for manufacturing and distributing consumer electronics and household items under the tax benefits regime in Tierra del Fuego. Newsan’s decision to continue its operations includes a plant in San Luis and was funded using its own funds for the transaction.

This move by Newsan is seen as a way to diversify and anticipate potential changes to the Tierra del Fuego regime. The company was founded in 1991 and has political ties to officials in Argentina. Additionally, Newsan has already expanded into the fishing business and became a major exporter in that sector. Overall, these shifts in ownership and operational decisions reflect the changing landscape of multinational companies in Argentina and the strategies local businesses are employing to adapt and thrive in the market.

Newsan is not alone in keeping its operations running smoothly during these economic challenges. Other companies have also found ways to adapt their businesses while facing tough times.

For example, SABMiller Plc., one of Argentina’s largest beer brewers, announced it would be selling off some of its brands due to declining sales. However, instead of cutting costs or downsizing their workforce, they decided to invest heavily into their remaining brands such as Quilmes beer.

In conclusion, multinational companies are not immune to economic challenges like any other business entity. However, those who are able to adapt quickly can find ways to survive or even thrive during tough times.

Local businesses are taking advantage of this trend by seizing opportunities presented by departing multinationals. With political connections and strategic thinking on their side, they can find ways to succeed where others fail.