Argentina moves to take over bankrupt soy crusher Vicentin
Argentina will take over bankrupt soy-crushing giant Vicentin,
with the aim of saving jobs and protecting the country’s food exporting sector,
President Alberto Fernandez said in a televised address on Monday.
Argentina is the world’s No. 1 exporter of soymeal livestock
feed and Vicentin is one of the country’s main producers. Vicentin, founded in
1929, was Argentina’s top exporter of processed soy and an iconic brand in the
domestic food market.
“Today we are signing a decree that provides for the
intervention of Vicentin,” Fernandez said.
“We are sending Congress an expropriation bill so that the
government takes over,” he added.
Vicentin has a joint venture with Glencore Plc called
Renova, which has a major crushing plant in Argentina’s Santa Fe province.
Renova has remained operational since Vicentin defaulted on its bank loans and
suppliers around the turn of the year.
Fernandez said he did not consult Glencore before deciding
to intervene in Vicentin. He called the move a “strategic decision for the
national economy.”
Argentina exported $12.2 billion in soyoil and soymeal last
year. Soy-based livestock feed manufactured along the banks of the Parana
River, Argentina’s grains superhighway, is used to fatten hogs and cattle from
Europe to Southeast Asia, while soyoil is used in cooking and to make biofuels.
“I want to give peace of mind to all the workers of the
company, who will continue in their jobs. And also to the 2,600 farmers who
will be able to count on the company to buy their grains for processing and
export,” Fernandez added.
Argentina is facing a grim economic picture after defaulting
on its own sovereign bonds last month.
Gross domestic product is seen shrinking 9.5% in 2020,
according to a recent poll of analysts by the central bank. Activity has gotten
walloped by a nationwide lockdown that started March 20 against the coronavirus
pandemic.
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