Pradecon, a steel production and distribution company of the Argentine Govan Group, has announced a USD 20 million investment to build a new plant in the Escobar Industrial Park. The company plans to expand its production capacity and range of services, aiming to strengthen against increasing external competition and challenges in the local market.
The new investment includes the construction of a 17,000 square meter warehouse in addition to the 18,000 square meter facility Pradecon built four years ago. This will bring the company's total facility area to 35,000 square meters. In addition, Pradecon will start offering specialized machinery for steel cutting, drilling and processing, as well as services for metal building materials and agricultural machinery.
Gustavo Romano, CEO of Govan Group, explained the purpose of the investment as “to increase our competitiveness and differentiate ourselves against the threat of cheap steel imports from abroad.” Romano stated that they aim to increase production volume by 10% to 15% with the expected growth in the construction sector, but they will maintain the current workforce.
Pradecon's investment is part of the company's strategy to strengthen its competition with Tenaris, the seamless pipe manufacturer of Techint Group, the largest player and supplier in the market. Pradecon, which will not be affected by the US tariffs on steel imports, aims to be more competitive in the local market.
Pradecon, part of the Govan Group, has more than 40 years of experience in the construction and steel sectors. The holding has 13 companies in three main business lines: construction, industry and real estate. Pradecon is also known for its own racing team and four drivers in the Turismo Carretera.
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