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January 2001

Strong beginning of the activity of assembly plant

More than three years after the promulgation of the Law Nº 1064/97, of the companies of assembly plants, the state has finished the regulation of this law and the National Council of Assembling has been constituted who granted at the end of the year 2000 the respective license to the first 11 companies that had asked to be able to work under the régime of this law.

Now the companies already authorized they have time until March of the 2001 of putting in order to all their papers to be able to begin their activities before half-filled of the year in course.

The assembling programs already approved by the state foresee a volume of investment of about 80 million dollars and they will give work, in direct and indirect form to some 2000 people.

Five of the 11 assembly plants are already preparing their facilities in the Central department.

The most illustrious international name among the new companies of assembly plants is that of the international electronic, Toshiba that is lifting up a plant for the production of electric apparatuses in the municipality of San Lorenzo, where will find work about 450 people. The initial investment that Toshiba carries out reaches some US $22 millions.

As for the quantity of the generation of work, the most interesting project is without a doubt that of the consortium of textile production ALFESA, constituted by two Paraguayan companies, those that signed a assembling contract with the Brazilian company of gear of the mark Hering. With an investment of US $3 millions, in addition to the facilities already existent of the two Paraguayan companies, work will be given in direct form and indirect to about 1.500 people.

The perhaps most sophisticated project that requires technology and installation of teams and machineries is the one of PETROLAB that is devoted to the prosecution of derived of petroleum. With an investment of some US $45 millions 30 work places will be created.

The other companies that are already preparing the beginning of their activities in the field of the assembling are Codeagro SRL, Party INC, Iris SAIC, TG Intercontinental Cuir INC, Ormitex INC, Welsheng Paraguay INC and Measure Dental Products SRL.

As do indicate the names of the companies, in a large part of them the projects require qualified skills, reason for which the companies already started the phase of formation and qualification of their personal.

For Mexico, starting up from the year 1994, assembling generated a great boom of exports and many work places were created. The growth of the re-exports of assembling products, mainly directed to the USA, was so big that in what refers to export values in the 2000 Mexico it has ended up being the eighth world power in selling their products to the exterior.

However, the assembling also has mainly negative characteristics for which is very criticized, in Europe, mainly because it lacks traditional mechanisms of labor protection and usually pays relatively low wages. Nevertheless, any Paraguayan worker will welcome a low salary that any remuneration in a country that lacks a social security completely.

Thomas Otter

 
 
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Assembling in Paraguay:
To produce without taxes, reexporting in Mercosur
 
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