Vipal Rubber starts production at Argentina tread rubber factory

Following US$20 million of investment, Vipal Rubber has started production at its new tread rubber and pre-cured tread factory in Argentina. Located in the Perez, province of Santa Fe, Argentina, the new factory will supply the Argentine and export markets.

Covering an area of 15 thousand square metres and a built area of 7.6 thousand square metres, the plant has an installed capacity of 1000 tons of rubber compound per month, 600 tons/month of which will be destined for the production of pre-cured treads. The Argentine plant also has a distribution centre, with 1000 of storage capacity.

According to its International Business Director, Leandro Rigon, the main objective of the company with this investment is to meet market demand, both in Argentina and in other Latin countries: ”The main objective of the factory in Argentina is to improve our capacity to serve the local market, with more efficient logistics, in addition to using the new platform for exports to neighbouring markets with greater synergy. After 25 years working in the Argentine market, today we have come to bring a novelty that will further strengthen our commitment to the country, something that fills us with pride and joy: Vipal now produces precured treads in Argentina!”

Started over 45 years ago in the city of Nova Prata, in the state of Rio Grande do Sul, in the southern region of Brazil, today Vipal totals about 183 thousand square metres of industrial park, with an installed capacity of more than 19 thousand tons/month across its other three units.

In addition, the company has its own Research and Technology Centre. “The company employs all the expertise and technology developed through its more than 45 years of history acting in the most diverse and demanding markets in the world,” comments Adalberto Fernández, Manager of Vipal Argentina.

Furthermore, Fernández noted that, while the new Argentina factory’s main focus is the Argentine market, it has already started producing for export to other countries. Specifically Mexico-based customers have already received their first shipment of precured treads made in Argentina.

Covering an area of 15 thousand square metres and a built area of 7.6 thousand square metres, the plant has an installed capacity of 1000 tons of rubber compound per month (Photo: Vipal)

Developing the Argentine market

Vipal has been commercializing its product line and position in the Argentine market for almost three decades. This has taken the form of a branch office, a distribution centre and a local team. Now, with the start of local manufacturing production, the company aims to show “how much it believes in Argentina and its people”. The Perez operation, explains Fernández, brings a series of benefits to the country, such as import substitution, job creation and its own export platform, among other factors.

Moving forward, Vipal aims to further mobilize retreading in Argentina. “It is a common practice in the transportation segment. Historically, since the beginning of retreading as a global activity, it has been present in the country. The market recognizes the economic and ecological advantages of the retreading,” says Leandro Rigon, adding: “The Perez plant is helping to promote savings for commercial transportation and support the circular economy. From now on, our customers, friends and employees can be assured of more fluid import processes and the certainty that their needs will be met by a factory dedicated to their demand ”.

Vipal Rubber’s Argentina factory’s entire workforce is made up of local workers, 41 at the moment. According to the original project, there are plans to hire 120. “With this important action, Vipal reaffirms its link with its customers in Argentina and in nearby countries. This is a milestone of pride for the Vipal family, who has always been present in this country of hardworking and respectful people. Producing in these lands means, finally, to obtain ‘Argentinean citizenship'”, concludes Rigon.