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Cablegate: Argentina:Commercial Success Stories, February To

VZCZCXYZ0002
RR RUEHWEB

DE RUEHBU #1099/01 2201849
ZNR UUUUU ZZH
R 071849Z AUG 08
FM AMEMBASSY BUENOS AIRES
TO RUEHC/SECSTATE WASHDC 1727
INFO RUCNMER/MERCOSUR COLLECTIVE
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEHRC/DEPT OF AGRICULTURE WASHINGTON DC
RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RUEHC/DEPT OF LABOR WASHINGTON DC

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

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