STRUCTURAL ADJUSTMENT AND BUSINESS STRATEGIES IN THE PETROCHEMICAL INDUSTRY OF ARGENTINA

Despite the unfavorable macroeconomic conditions, the petrochemical industry was one of the most dynamic branches of the Argentine manufacturing sector in the last two decades. The sectoral regulatory framework made it possible to build up technologically modern plants with adequate scales, nonetheless, the benefits of productivity growth were not transferred to local consumers via lower prices. The ongoing structural reform programme has sharply altered the conditions of competition within this industry. The enterprises have reacted in a defensive way, mainly taking rationalization measures The lack of expansive strategies may be explained by the uncertainly regarding three factors: the sustentability of the current reform programme, the likely rate of growth of the domestic economy and the evolution of the international petrochemical prices.