Rise of the Argentine Empire
#307 - Copycat factories emerge
In the past two decades, Buenos Aires has successively promulgated various laws to promote Argentina's industrialization process. From the Five-Year Plan of the Perón era to Frondizi's introduction of foreign investment, it has been exploring the construction of Argentine industry, but the effect has not been very good.
The Automobile Industry Law promulgated in 1944, the Steel Industry Law in 1947, the Petrochemical Industry Law in 1951, the Tractor Industry Law in 1952, and the Papermaking Industry Law in 1957 are all relatively mature bills.
La Pampa Province was established relatively late, and these industrial bills were rarely implemented in La Pampa Province. The original population was only over 100,000, and there was not enough strength to implement these bills. These were basically tailor-made for large provinces such as Buenos Aires Province, Córdoba Province, and Santa Fe Province.
Previously, Buenos Aires mainly positioned La Pampa Province as a purely agricultural and pastoral province, without its own access to the sea, mainly dependent on Córdoba Province and Buenos Aires Province, and was the intermediate transition zone from the Pampas to the Patagonian Plateau.
The old provincial capital, Santa Rosa, is located near the most densely populated area of the province. The western part is the Pampas Valley, the shrubby, semi-arid Patagonian Plateau and mountains. The climate is relatively dry, with a little small-scale processing industry. Now it is indeed developing well.
After the merger with Bahía Blanca, La Pampa Province had the foundation for take-off. In five years, the population size doubled 20 times, from 200,000 to more than 4 million.
With the financial help of the city of Bahía Blanca, coupled with the reform of administrative divisions, the population of Santa Rosa exceeded 300,000 last year, and metallurgy and mechanical industries have been developed in accordance with local conditions.
The extraordinary influx of population and the primitive capital provided by the Cohen Consortium have laid the foundation for the industrialization of La Pampa Province. Otherwise, even more good policies would be empty talk.
San José benchmarked New Taipei and South Korea. Last year, New Taipei had a population of 10 million and a gross product of 1.83 billion US dollars. South Korea had a population of more than 23 million and a gross national product of 1.9 billion US dollars. La Pampa Province has a total population of 4 million and an economic scale of 1.4 billion US dollars.
Economically speaking, La Pampa Province is not much different from New Taipei now. As long as several large industrial projects are put into production, the industrial development of La Pampa Province can be raised to a higher level.
La Pampa Province just lacks a sugar daddy like the United States, but La Pampa Province also has Argentina to rely on.
The new senior official, José Cohen, localized these bills according to La Pampa Province, and promoted and implemented them all within the first year of his tenure. The high efficiency and integrity of the reformed La Pampa Province administrative agency is also the best in Argentina, and he very clearly puts economic growth in the first place in the Provincial Government, with economic development above all else.
Previously, the finances of the Provincial Government and the municipal governments were relatively independent, each with its own sources of financial income and expenditure items. Before the merger of the metropolitan area, the power of financial taxation was concentrated in the Provincial Government, and La Pampa Province became the first Provincial Government in Argentina to complete centralization, with the ability to concentrate money to do great things.
In addition to simple bills and finances, José quickly promoted the industrial experience of Bahía Blanca. After completing the merger of the metropolitan area, the La Pampa Provincial Government also cooperated with the Argentine National Railway Company to repair and build new railways in La Pampa Province, and complete the connection with the existing railways, which can transport mines, grains, and agricultural and livestock products from nearby provinces faster.
By establishing a well-developed La Pampa highway system throughout La Pampa Province, Bahía Blanca has a stable rear, and Argentina's developed railway transportation also provides great convenience for highway construction, making exports more and more convenient.
……
José achieved certain industrialization results by absorbing a large number of domestic and foreign immigrants to engage in construction, introducing technology, and cultivating local talents, relying on the power of the entire province to develop industry.
The introduction of these talents and overseas training have greatly enhanced the technical and R\u0026D strength of local companies in Bahía Blanca, and also enhanced the overall strength of Bahía Blanca.
At present, labor-intensive manufacturing factories in Bahía Blanca generally adopt assembly line technology. Workers in textile and garment factories only need to have elementary school level, and almost no skills are required to complete assembly operations. Factories have no demand and no motivation to train intermediate and senior technicians.
However, when the industrial structure of Bahía Blanca develops towards the automobile industry and the electrical and electronic industry, the supporting role of high-level vocational education will become apparent.
In addition to European technology sources, Bahía Blanca obtained some secret technical assistance in exchange for a large number of low-priced grains sold to New China. Although Soviet technology is not as precise as European technology, it does have many advantages.
By importing a large number of foreign machines, sending personnel to study and investigate abroad, analyzing foreign products, and introducing the most advanced foreign technical documents, Bahía Blanca has gradually achieved results in developing reverse industrialization.
In addition to the complete introduction of companies such as Layton Motors, Maya Chemical, Southern Petroleum, New Cohen Heavy Industry, and La Plata Steel Plant, and then localizing them, this is a necessary preparation.
However, in José's view, copycat industry has more potential, and it is also a shortcut because of its low cost and huge benefits.
José is no stranger to copycats. The arms and weapons sector under the Cohen Consortium started by copying weapons. Limited by Argentina's local industrial strength, the copycat failed. Fortunately, the Germans joined later, and it developed into Argentina's number one arms dealer.
"The Germans and Japanese are all copying, there is no reason why Argentina cannot copy."
Because of the improvement of the industrial system in La Pampa Province, more small companies have the ability to imitate European industrial products, and can copy them by reverse disassembly of industrial products.
A large number of industrial supporting facilities have given Bahía Blanca the ability to establish a local supply chain, and the copycat industry has developed rapidly.
In recent years, with the establishment of various universities and research institutes, the training and introduction of talents, the progress of the copycat industry in Bahía Blanca has also had the possibility of upgrading.
In urban areas and counties with better geographical conditions, the overall planning is carried out by the Bahía Blanca Industrial Development Committee, and the municipal government grants the subordinate districts and counties the authority to establish district industrial development committees. The district committees each establish standardized industrial parks.
These industrial parks completely optimize the infrastructure in accordance with the standards of three connections and one leveling in later generations, build large-scale ports, and conduct water, electricity, and communication connections, which can allow local and foreign factories to develop faster and attract domestic and foreign factories in Argentina to settle in.
Because of the progress of the industrial system in Bahía Blanca, especially the externalization of various machine tool factories, mold factories, and engine factories, as well as various European and American electronic and electrical products, coupled with indulgence and even guidance, the number of various large and small factories in Bahía Blanca that copy European brands is increasing. From motorcycles to various household appliances, there are various copycat products, such as the Lingang Industrial Zone, which is a disaster area for copycat goods.
With the establishment of Bahía Blanca Steel Plant, Hans Steel Plant, Layton Automobile Plant, Southern Petrochemical Plant, Maya Chemical Plant, Philip Tractor Plant, Philip Motorcycle Plant, Bahía Blanca Shipyard, Enke Electric Appliance Plant, and Cohen Heavy Industry Truck Plant, which have a certain technical content, the development of related industries has been driven, and the industry in La Pampa Province has rapidly entered the development stage of heavy industrialization. Industrial sectors such as steel, petrochemicals, automobiles, agricultural machinery, machine manufacturing, and electronics have been gradually established and developed.
Domestically, companies like Bono Electronics, Pampas Electric, Enko Electric, Blue Harbor Electric, Belgrano Shipyard, Argentine Diesel Engine Factory, Blanca City Precision Machine Tool Factory, Alberto Pharmaceutical, Masong Pharmaceutical, Brida Energy, Blue Cloud Clothing Chemical Fiber Factory, Green Umbrella Cano Chemical, Garcia Nosbel Chemical, Blue Ocean—Federal Plastics Chemical, have emerged, reducing the cost of raw material production and processing.
In addition, there are a large number of trading companies such as Valentin Trading, Martinez Trading, Blanca Commercial Trading, and Visa Trading, which have improved Blanca City's industrial chain and exports.
Blanca City Commercial Bank, La Pampa Industrial Bank, and La Pampa Commercial Bank provide a large number of low-interest loans to small and medium-sized factories in La Pampa Province, while large banks such as Balen Bank mainly provide support for the Cohen Consortium, high-quality factories, and infrastructure construction. The National Stock Exchange provides financing assistance to high-quality companies.
These companies are the backing of Blanca City's copycat industry, and the low-income population provides the market for copycat products.
A large number of small and medium-sized factories use the resources and talents of large factories to start mass-producing European and American goods. Cheap radios, various copycat European-style clothing, leather products, and even high-end goods such as motorcycles have made the roads in Blanca City begin to become congested.
Among them, the Blanca City Temonoma Motorcycle Factory, established in 1956, was the first motorcycle factory in Blanca City to copy Italian motorcycles. At first, it only used a hardware processing factory of Blanca City Special Steel Factory, but quickly smelled the business opportunity of motorcycles.
The Italian motorcycle industry was impacted by the automobile industry, and many small motorcycle factories closed down, while the demand for motorcycles in Argentina was rising crazily, and the local Layton Motorcycle and Philip Motorcycle could not meet the demand.
Temonoma began to smuggle parts from Italy and Japan to assemble motorcycles, and the profit and sales were surprisingly good. Blanca City originally had several motorcycle parts factories that代工 for Philip Industries, and with a large number of orders, they began to cooperate in imitation, and the scale became larger and larger.
Later, Temonoma simply cooperated with precision machine tool factories and mold factories to produce one-to-one parts for self-assembly. Self-production has three times the profit, and the quality is surprisingly good. The affordable Luz Motorcycle R10 sold 20,000 units in 50 years. Their boss, Monoma Luz, is preparing to purchase production equipment in Italy, and Balen Bank will provide Temonoma with international loans.
Many small companies have also rapidly developed into large companies because of this. Some have acquired companies in the same industry, rapidly expanded their scale, raised funds after listing, and established new factories.
Like Alta District, it is currently the second strongest industrial district in Blanca City, second only to the East District, which has the Lingang Industrial Zone. Blanca Steel and Hans Steel contribute a large amount of tax revenue and employment.
After the division into two districts, Alta District was divided into more than 40 industrial enterprises, and its strength was reduced a lot, but its strength in chemical, automobile, steel, machinery, shipbuilding, military industry, and parts factories is still there. Through the establishment of new industrial parks, coupled with the stimulation of various new policies and funds, it quickly recovered its vitality. In half a year, the number of newly registered factories of various types has exceeded 1,500.
Now Blanca City's low tax rate, good legal environment, relatively complete infrastructure, excellent port conditions, and the influx of cheap labor have become the key to Blanca City and La Pampa Province's use of industry to revitalize the economy. In addition, with the listing support of the Argentine National Stock Exchange, it has finally attracted a group of Argentine domestic factories and commercial entities to settle in Blanca City.
Argentina's financial infrastructure is relatively backward, which is reflected in the backwardness of the banking and securities industries. Many still use methods from the last century. The emergence of the Argentine National Stock Exchange has changed the development process of Argentina's financial industry.
San Jose introduced the Wall Street securities system, promulgated the Securities Exchange Law, and carried out a large number of reforms, stipulating listing regulations, and promoting the construction of an electronic trading center, with the goal of having listed companies exceed 200 before the 1960s.
In addition to these laws, the La Pampa Provincial Government has successively promulgated the La Pampa Provincial Shipbuilding Industry Law, the La Pampa Provincial Electronics Industry Law, the La Pampa Provincial Pharmaceutical Industry Law, the La Pampa Provincial Aviation Industry Law, the La Pampa Provincial Machine Tool Promotion Law, the La Pampa Provincial Textile Industry Law, the La Pampa Provincial Electric Power Industry Law, and more than 10 other new laws.
Supporting large state-owned companies, providing a convenient environment for the development of small and medium-sized commercial enterprises, and providing various support policies, laws, and finance, make the development conditions in La Pampa Province easier and easier.
Last year, Argentina promulgated a more comprehensive Industrial Promotion Law, covering the main industrial categories in the world, and established the Argentine National Industrial Committee to carry out overall industrialization step planning, which is more detailed than Peron's Five-Year Plan, and also inherits the advantages of Peron's industrialization, which San Jose called Argentina's "Three-Five Industrial Plan."
La Pampa Province first established the La Pampa Industrial Committee, and then personally entered the market to establish the La Pampa State-owned Assets Committee.
San Jose is actually a little hesitant. Is Argentina really ready to concentrate the country's entire strength and use decades of economic planning and efforts to complete the establishment of an industrial system?
After all, building a basic industrial system is a very difficult and painful process, and the cost is very high.
It is not simply building a few large factories to achieve the establishment of an industrial system.
Under the stimulation of La Pampa Province and the rapid promotion of industrialization, developing foreign trade and export economy has become the key to determining the province. More and more Argentine provinces have joined the new round of industrial competition.
A large number of small family-owned companies, small trading companies, large local-owned enterprises, branches of multinational companies, and state-owned companies belonging to La Pampa Province and the city are important components of La Pampa Province's economy.
In terms of old industrial areas, Lingang Industrial Zone, as the location of the first industrial park in Blanca City, gathers more than 300 large and medium-sized factories and more than 2,000 small factories, and therefore gathers nearly 100,000 migrant workers.
The number of employment positions ranks first among the major industrial zones in Blanca City. Other large industrial zones such as Alta District, Arias District, Carvido District, Bosca District, and Ajrichi District have a maximum of about 50,000 people.
Relying on convenient sea and land transportation and special policies, Blanca City has initially grown into a comprehensive industrial city centered on the steel industry, including metallurgy, machinery, automobile, electric power, shipbuilding, petrochemical, light textile, and clothing industries. Currently, its industrial output value is second only to Buenos Aires.
……
"Dr. Tanke understands second-generation fighter jets."
In the newly established San Martin Automobile Factory, San Jose saw the San Martin No. 1 prototype car. This is a two-door, four-seater model. The body is not large, and it uses a San Martin aircraft engine, a 50-horsepower engine. The appearance looks relatively simple, and the engine is a redesigned improved version.
The new person in charge has carried out a major and comprehensive reform of Layton Automobile, completely restructuring it from organizational structure, technology research and development, and model planning.
Last year, Argentina's automobile industry was only half of that of Brazil. After all, Argentina only has two local automobile factories, one Layton Automobile and one Ditellia. The Fiat 600 and its various improved models dominated the Argentine market and surrounding country markets.
However, Brazilian Fiat Auto has not obtained the authorization of Fiat 600, and has to admit that San Jose's vision is vicious. It spent 40 million US dollars before and after, but earned back several times the profit and an automobile factory with a production capacity of 60,000 vehicles, and also supported a group of local small-scale automobile parts factories.
Now Fiat Auto's cooperation with Layton Automobile has completely collapsed, but the franchise of Fiat 600 cannot be taken back, and Fiat headquarters has money and plans to invest heavily in its subsidiary Brazilian Fiat.
After the reorganization of Layton Automobile, although there is Wuling Zhiguang, it cannot meet the requirements in terms of craftsmanship, so it has been modified.
In 1927, Argentina's first local automobile production plant appeared in Cordoba Province. That's right, that automobile factory was under the Argentine National Military Aircraft Factory, but it soon closed down. At that time, there were as many as 10 factories under the Military Aircraft Factory, which could produce automobiles, motorcycles, and tractors, and was the leader of industrialization in Cordoba Province.
Saint Martin Aircraft always had automotive DNA, so Dr. Tank's choice of automotive contract manufacturing wasn't surprising. It's a profitable business. Saint Martin Aircraft even established an engine design team to design a 50-horsepower, fuel-efficient engine.
In the first half of this year, Argentina already has 19 automobile manufacturers, mainly local automobile factories and assembly plants of foreign automobile giants in Argentina.
In terms of distribution, there are 6 in La Pampa Province, 7 in Cordoba Province, and 6 in Greater Buenos Aires, with Greater Buenos Aires being the capital and surrounding cities.
Last year, Argentina's total annual automobile production reached 90,000 vehicles, with the Fiat 600 series accounting for 60,000 vehicles.
Among the 19 automobile factories in Argentina, 11 are manufacturers of cars and light trains, and 7 are manufacturers of trucks and passenger vehicles.
Among the 5 in La Pampa Province are local automobile factories: Leyton Motors, Ditellia Motors, the newly established Saint Martin Motors, Philip Motors, and foreign Renault Motors.
As Argentina's biggest competitor in the automotive industry, Brazil, like Argentina, imported 100,000 vehicles annually before 1953, placing a heavy burden on foreign exchange balance. The Brazilian government was once forced to restrict automobile imports, but consumer demand for automobiles forced the Brazilian government to find alternative solutions.
Currently, the Brazilian automotive industry is one step ahead of Argentina. Similar to Argentina's domestic production model, the Brazilian automotive industry now adopts the CKD model, where their automobiles enter in a completely disassembled state, and then all the parts and components of the automobile are assembled into complete vehicles.
A large number of Brazilian automobile parts are imported from Europe and the United States in order to avoid high tariffs on complete vehicle imports. American and European automobile manufacturers in Argentina have also adopted the same measures, so strictly speaking, most of Argentina's automobile factories are still assembly plants, and their contribution to the cultivation of the automotive industry is still quite limited, contributing fewer jobs than Leyton Motors alone.
Brazil has established 26 automobile manufacturers, but the production model of automobile companies entering Brazil is assembly, with parts completely imported from outside. Overall, it is still stronger. There are two local Brazilian automobile companies, one is Catarin Automotive Industry Company, and the other is the Sebastian family's automobile factory.
1955 was a watershed year. After Saint Hesser obtained the licensed production rights for the Fiat 600, he spent a lot of money to build a factory and then localized the parts, and the Argentine automobile industry began its localization process.
Brazil officially possessed complete vehicle production capabilities one year later than Leyton Motors, and also came from Italy. In 1956, the Brazilian factory built by Italian Romi introduced the Romi-Isetta model. The technology for this car came from the West German BMW Group.
The Romi-Isetta model initially used a 7-kilowatt engine produced by Italian Romi itself. The car could reach a top speed of 85 kilometers, but because the quality was not good and it did not meet the aesthetic standards of Brazilians, sales were poor.
Leyton's Fiat 600 also exports a large number of parts to Brazil, competing with Brazilian Fiat in the same industry. Because of the exclusive agency authorization, Brazilian Fiat does not have the Fiat 600, allowing the Argentine-produced Fiat 600 to dominate the market.
Saint Martin Motors and Philip Motors came at the right time, as Fiat was facing pressure from foreign automobile factories and had some idle production capacity.
In addition to continuing to fund Saint Martin Aircraft, Saint Hesser sent people to divest Saint Martin Aircraft's unprofitable businesses, while providing support and assistance to promising businesses.
Then, some profitable businesses of the provincial and municipal governments were handed over to this Argentine quasi-first-tier military contractor to develop other profitable businesses.
For the safety of Dr. Tank and his team, Saint Hesser arranged professional security personnel.
The Cohen Consortium also has many internal problems. With Barron Bank as the core, Saint Hesser rearranged financial personnel to conduct a large-scale audit of the companies under the Cohen Consortium.
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In the past 10 years or so, in addition to the more than 3 million new immigrants who have joined Argentine nationality, there are also approximately more than 2 million foreigners.
As it stands, Argentina still continues its influence over Paraguay, Uruguay, and Bolivia. Buenos Aires is far superior to Rio de Janeiro in these three countries. Argentina's attraction through the La Plata River network can even affect the Brazilian hinterland.
Argentina is now the largest economic investor in Paraguay and Uruguay. The famous Argentine mining company, Thunder Mining, is mining iron ore and natural gas in Bolivia.
Especially during the Peron era, which was originally the beginning of Argentina's complete decline and failure, the decline has now been contained. President Frondizi used his professional skills to revitalize the Argentine economy, and the development of La Pampa Province has also injected new vitality into the Argentine economy.
La Pampa Province accommodates nearly 1.1 million new immigrants and foreign personnel, accounting for a quarter of Argentina's total.
Such a large-scale influx of population is challenging the administrative capacity of the La Pampa Provincial Government.
Among Argentine immigrants, most come from Brazil, Paraguay, Uruguay, and Chile. In addition, there are approximately 100,000 Europeans and Americans, and approximately 400,000 South Asians and Southeast Asians (Indians, Nepalese, Chinese), as well as a portion of Africans and Middle Easterners settling down.
After the end of the Paraguayan War, Paraguay's industry and other modern industries died out, and the entire Paraguay reverted to an economic model based on agriculture and animal husbandry. To this day, Paraguay remains one of the poorest countries in South America.
Last year, the entire population of Paraguay was less than 1.65 million, and more than 200,000 Paraguayans immigrated to and worked in Argentina, mostly women.
The situation in Uruguay is a little better, but nearly 300,000 people have also immigrated or work in Argentina in the form of international labor, leaving Uruguay with less than 2 million people now.
There are also more than 300,000 Chileans in Argentina.
Many people from the southern states of Brazil also go to Argentina to find work, as many as 300,000.
…
Local animal husbandry and indoor breeding industries are developing rapidly. In 1958, La Pampa Province had 2.85 million cattle, 220,000 sheep, and 150,000 pigs. Agricultural grains include rice, corn, wheat, and potatoes. Oil crops are mainly soybeans, and the total output has exceeded 4 million tons, far exceeding the supply needs of the province and Blanca City, and can be processed and exported.
Among them, the pigs have already begun to have the flavor of Saint Hesser's previous life. After castration and the introduction of the English Large White pig, crossbreeding with local pigs has been carried out to select the best of the best, with excellent quality and a high meat yield.
Pork has also spawned many new ways of eating in Blanca City. In addition to the daily dishes, a large number of new immigrants have greatly enriched the cuisine of Blanca City, with the appearance of braised pork, shredded pork with Beijing sauce and various dishes, satisfying Saint Hesser's taste buds.
For example, the Spanish-style ham factory produces Iberian ham that already has a Spanish style. Pig breeding is established in the suburbs of Blanca City, while the processing plant is in Saint Germain County, further away from Blanca City.
Saint Germain County is a suburban county of Blanca City, originally belonging to Choele Choel City. It is a remote and backward town with an area of 1,060 square kilometers. The climate is relatively dry. The county town of Saint Germain already has a population of 27,000 people. It is connected to the urban area of Blanca City by a highway, and a large number of trucks transport fresh cattle and sheep from more than 20 kilometers away every day for processing.
With the support of Blanca City, it has developed into an important meat food processing base in Blanca City, and now has 14 meat food processing plants and slaughterhouses, mainly producing bacon, ham, sausages, luncheon meat, canned food processing plants, as well as the production of various jerky, most of which are used for export. Because the wages are good, it has attracted the participation of surrounding farmers in La Pampa Province in the factory, and the speed of urbanization has also accelerated a lot.
The same situation as Saint Germain County occurs in the 9 suburban counties of Blanca City. These suburban counties belong to those with relatively poor conditions and a relatively small population. They are not suitable for the development of large-scale industries in the short term. Saint Hesser adapted to local conditions and conducted investment promotion for some food factories, canning factories, and meat processing plants in Blanca City to help these poor suburban counties develop.
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