BUENOS AIRES, ARGENTINA — Argentina’s GTR srl, a growing producer of polypropylene spunbond nonwoven fabrics, should triple its production capacity with the addition of a second line by the end of this year, and is open to a sale of the company if an attractive offer is made, the company’s CEO told Plastics News during Argenplás.
Founded in November 2011 by three families, GTR has grown quickly by riding the seemingly insatiable demand for nonwoven fabric materials in Argentina, while being guarded from competitive imports by the federal government’s ongoing tariffs and control measures against imported goods which compete with local industries.
The company produces nonwoven fabric from PP masterbatches in various weights, colors and dimensions from its 1,800-square-meter plant outside Buenos Aires for sectors like automotive, footwear, agribusiness, shopping bags, hospital uniforms and more.
GTR was producing at its full capacity of roughly 100 metric tons per month on its single line as of last year, quite a leap after starting from scratch just over one year before that, said Sergio Roitman, CEO.
“We’re debt-free and ready to expand, after starting out in late 2011 by [cold-calling] and knocking on doors for our first customers,” Roitman said at the Argenplás trade show, held June 16-19 in Buenos Aires. “The government’s taxes and outright denials to import some goods and machines definitely frustrate many, including us sometimes, but you can see this policy helped our business to start.”
GTR’s plant is equipped and ready to install a second line that will take its monthly production capacity from 100 tons to 300 tons, with the company confident domestic demand is available to keep both lines busy.
The new SS nonwoven fabric machine, purchased from China for about $2.5 million, should arrive and be installed by the end of this year. GTR will pay at least 18 percent more in import tariffs for the foreign-made machine to be released by customs in Buenos Aires, despite the fact that no local manufacturers produce a competing model, Roitman added.
The company’s three shareholding families have no need to seek private financing for further expansion in the coming years thanks to GTR’s early success, but are open to considering a sale of the business if a good deal is presented, Roitman said.