Argentine-Made Wheels to Replace Chinese Imports in Brazil

In a move that counters the trend of imported goods, Argentine group Mirgor has inaugurated its new aluminum wheel plant in Zárate. The company has secured an agreement to supply wheels to an automotive plant in Brazil, effectively displacing a Chinese supplier.

The first shipment is scheduled for July 15, marking a significant milestone for Argentina's automotive sector as locally manufactured wheels will replace those produced in China. With an investment of US$120 million, the facility boasts a capacity of 1.2 million wheels annually, with one-third earmarked for export.

This venture, undertaken with Brazilian company Neo Rodas as a minority partner, was conceived with an export focus, primarily targeting the Brazilian market. Mirgor CEO José Luis Alonso highlighted that access to aluminum from suppliers like Aluar in Argentina and Alcoa in Brazil, with pricing aligned to international aluminum values, allows them to compete on equal footing with international manufacturers.

Alonso also emphasized the plant's high level of automation, enabling the production of 1.2 million wheels per year with 230 employees, a stark contrast to competitors who may require around 370 workers for a significantly lower output. This strategic expansion is part of Mirgor's broader plan to reduce its reliance on operations in Tierra del Fuego, which have seen their share of the group's revenue decrease from 85% five years ago to the current 40%, with a goal of reaching 20% by 2030.

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Today Tierra del Fuego represents 40% of our turnover. The other 60% is divided in similar parts between industrial operations on the continent and international businesses.