```json
{
    "title": "Situation of the SMEs related to the Energy Sector in Mendoza",
    "url": "https://energiaenmovimiento.com.ar/situation-of-the-smes-related-to-the-energy-sector-in-mendoza/",
    "datePublished": "2019-05-15",
    "dateModified": "2025-10-13",
    "language": "es"
}
```

# Situation of the SMEs related to the Energy Sector in Mendoza

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## Situation of the SMEs related to the Energy Sector in Mendoza

![image](http://energiaenmovimiento.com.ar/wp-content/uploads/2019/05/foto-totero-01.jpg)

#### by

Julio C. Totero
ASINMET Mendoza
President

- **The resources **

Mendoza is a province with plenty of resources, but it is not a rich
one. The oil has been for years the activity that contributed to the highest
sectoral percentage to the GGP, above the 20%. 
Energy plays a major role in the contribution of resources as well as
the non-metal mining, though to a lesser extent.

However, there are strong expectations as regards the growth in the
participation of Energy and Mining and the opening- up of new business
opportunities.

This possibility that involves the development of renewable energies has
aroused great hope for the metal-mechanic industry. Business organizations came
out strongly to support this initiative that, currently, has become a state
policy. Nowadays, four micro hydroelectric generation projects of Renovar 1 and
five more projects of Renovar 2 are under construction and there are also six
photovoltaic projects to be developed during 2019. Moreover, the project El Sosneado
was awarded for wind generation of about 50MW.

A great debate was opened with the mining sector that ended up in the
Dialogue Space called on by the provincial government.  It was attended by more than 1,000 professionals
whereas the provincial anti-mining sectors did not as they are aware that they have
lost the technical-professional debate. This work of more than a year has
finished and it is expected that a clear mining development policy will emerge
and will also become a state policy. During the year 2018 the reform of the law
7722 was discussed in the provincial senate as well as another bill that
proposed the creation of controlled mining parks. However, neither of
these  initiatives has been accomplished  due to the lack of agreement among the
political forces which seem to be unaware of the need to move forward quickly
with these reforms. The debate over the remediation of the Uranian mine of Sierra
Pintada was also held in 2018 and we expect that during 2019 the remediation of
these environmental liabilities will be achieved and the exploitation of this
project will continue.

Business development has been mostly driven by the oil sector and
remains attentive to the development of the provincial south with Vaca Muerta
and the investments planned by YPF in distillery.

- **The SMEs**

To face these challenges, the industrial SMEs and mainly the ones
belonging to the metal mechanic sector have to make a great effort. As there
has been an important fall in the agro-industrial activities, among others, it
is imperative to take advantage of these opportunities.

The industrial framework that the province presents has proved to be
competitive over time and to have the technological capabilities to meet these
challenges. Manufacturers of capital

goods such as high power transformers, crushers, conveyors, turbines and
hydraulic equipment, structures, tanks, electromechanical facilities and
services of a wide variety of specialties are part of Mendoza metalworking
industry that, through time, was able to project itself to the most diverse
local and international markets.

- **The State’s task**

The State has to articulate local actors, investors and the financial
system. Perhaps this has been the biggest deficit in recent times. We have seen
how business opportunities for our SMEs have vanished. In this respect, we can
say that big metallic structures come from other Argentinian provinces, having
local suppliers of excellence. Mini plants for hydraulic generation coming from
Europe, whereas there are local companies with strong experience in this field.
Galvanized support for solar panels, electromechanical installers, transformers
and others. Many local SMEs have missed opportunities vis-à-vis foreign
competitors that have more competitive advantages in contrast with our SMEs.
Here, there is a high rate of gross income (in some cases it exceeds 5 %) and
stamps tax, etc. We do not have a provincial bank to leverage the development
as San Juan, Neuquén, Córdoba or Buenos Aires do have. It has not been possible
to articulate all the actors to take advantage of these opportunities offered
by the energy sector in general. As it is necessary to generate employment, the
situation this year will require to act firmly to seize these opportunities and
create, above all, an economic development plan.

- **The Current Situation**

The low level of activity makes it
necessary to take particular political decisions resulting in job creation and
work for the industrial SMEs. Nowadays, as our idle capacity exceeds 40% there
is much infrastructure available, there is technology and there are enough
human resources to tackle the development of the energies as a whole. Today,
Mendoza’s business sector led by Industrial Union of Mendoza, where ASINMET (
Association of Metallurgical Industrials) plays the main role, has stepped
towards the realization of an energy cluster to give visibility to this sector.
More than 100 local SMEs participate in this sector with the capacity and will
to become part of it. The provincial State is backing this initiative, but much
more than this is needed. A strong decision is necessary to develop
metalliferous mining and a as well as the understanding of the SMEs logic to drive
them closer to the big businesses. It is essential to give support to the
development and understand that the best way of learning is doing things;
nobody learns watching only how others do business.

The situation is difficult but the solution is
part of the “Revolution of the Simple “, as the Governor of the province says.