ARGENTINA:COMMERCIAL SUCCESS STORIES, FEBRUARY TO

UNCLAS BUENOS AIRES 001099 SENSITIVE SIPDIS PASS USTR FOR DUCKWORTH DOC FOR ALEXANDER PEACHER TREASURY FOR LTRAN USCINCSO FOR POLAD E.O. 12958: N/A TAGS: ECON EINV BEXP ENRG EIND AR SUBJECT: ARGENTINA:COMMERCIAL SUCCESS STORIES, FEBRUARY TO JULY 2008 REF: A. SECSTATE 78219 ¶B. SECSTATE 76388 ¶1. (U) Per reftels, Embassy Buenos Aires submits the following two recent commercial success stories for the period February to July 2008. ¶2. (SBU) Date: July 2008 Post/Department Office: Buenos Aires Action Officers: Ambassador E. Anthony Wayne, Commercial Counselor Brian Brisson (FCS) Country: Argentina Company: General Electric Trade Associations: N/A Company Headquarters (state and zip code): Fairfield, Connecticut 06431 Issue/Project: U.S. Embassy Buenos Aires has been supporting General Electric's (GE's) efforts in Argentina for many years. In 2007 and 2008, GE sold two gas turbines to Chubut province, which represents 20% of total GE estimated 2008 sales in Argentina. The first turbine was a USD 70 million dollar Ingentis I gas turbine that will be installed in the town of Dolavon. The contract was closed 4Q 2007, and the units will be delivered 4Q 2008. The second turbine was a USD 25 million dollar Ingentis II gas turbine that will be installed in the town of Esquel. The contract was also closed 4Q 2007, and the unit will be delivered 4Q 2008. Ingentis I will provide additional power to the national grid, mitigating energy shortages experienced in Argentina, while the provision of additional energy to Chubut makes the province more attractive to future investment. Ingentis II will provide energy to Esquel city and the excess will be sold to the national grid. Specific Actions Taken: In early 2007, Commercial Counselor Brisson made initial contacts with the Chubut Provincial government in support of GE. In February 2007 Ambassador Wayne lobbied Chubut Governor Mario Das Neves regarding the sale of GE products related to two planned power generation projects in Chubut. This visit influenced Chubut Province's decision to contract with GE. The Governor and Ambassador discussed the progress of the program again in April 2008. In an August 2008 correspondence to EconOffs and in 2008 conversations, GE attributed Ambassador Wayne's involvement promoting GE's products and capabilities as key to securing this important business opportunity with a total value of USD 95 million. GE added that it was very pleased and thankful for the support of the U.S. embassy and its staff. ¶3. (SBU) Date: May 2008 Post/Department Office: Buenos Aires Action Officers: Ambassador E. Anthony Wayne, Commercial Counselor Brian Brisson (FCS),Col. Joseph Napoli (MILGRP) Country: Argentina Company: Lockheed Martin Corporation Company Headquarters (state and zip code): Bethesda, Maryland 20817 Issue/Project: U.S. Embassy Buenos Aires has been supporting Lockheed Martin Corporation's (LM's) efforts in Argentina since LM took over an aircraft manufacturing facility from the Argentine Air Force in the city of Cordoba in 1995. The LM Argentine subsidiary operating under the name of Lockheed Martin Aircraft Argentina S.A. (LMAASA) performs aircraft maintenance and overhaul services for military as well as commercial clients, and is producing an advanced jet trainer/light attack aircraft of Argentine/German design known as the Pampa. In 2007, the contracts for these activities expired, and thanks to the efforts of the U.S. Embassy, and specifically the Ambassador, FCS and MILGRP, were successfully renewed. Specific Actions Taken: Throughout 2007, LM requested that Embassy Buenos Aires provide assistance in renewing their contract with the GoA. Ambassador raised this issue during several meetings with high-level government officials, including President Cristina Fernandez de Kirchner, then-Cordoba Governor Jose Manuel De la Sota, and Defense Minister. In addition, FCS and MILGRP staff contacted several key officials in the Ministry of Defense (MoD) to advocate on their behalf. At LM,s request, Ambassador raised the need for the President to sign the contract with Cabinet Minister Alberto Fernandez in April. As a result of these collaborative efforts, on May 5, 2008, LM reported that President Kirchner signed a decree approving LMAASA's contracts with the MoD through the year 2010. In a letter to the Ambassador, LM attributed the U.S. Embassy's intervention as key to securing this important business opportunity for Lockheed Martin valued at USD 80 million. These are two separate contracts for aircraft upgrades/engine repair and the manufacturing of Pampa jet trainers. As a result, LM will continue to directly employ 1,000 specialized technicians, and indirectly impact 3,000 other jobs. WAYNE