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 reforms. He has cut subsidies, encouraged private investment, permitted the peso to float freely on the exchange market, and limited consumer 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 inflation fell to less than 17 percent on an annualized 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 inflows 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 positive from stable and affirmed the issuer rating at B3. The agency said, “The first driver supporting 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 meeting in Buenos Aires, IMF deputy managing director David Lipton commented on the Argentine economy: “There are early signs of policy success. We expect the economy to rebound this year and next, and inflation to continue to decline.”