Argentine Defense Industry

Within the Argentine armed forces, there does not currently exist a centralized system for decision-making and procurement for defense related articles. Decisions to procure new equipment or enter into long-term service contracts are normally made at the Chief of Service level. The Ministry of Defense is usually responsible for consolidating Service requests and seeking approval for the required funding from the Ministry of Economy. For large contracts, the Ministry of Defense plays a larger role in source selection and contract negotiations.

Argentina has privatized most of its government-run organizations. The private electrical, gas and telephone systems are well into their second or third year of existence. The gas and oil industries have also experienced changes, and many U.S. companies are involved in their privatization.

During the mid-1990s the military began to sell off many of its industrial assets and it started the process of privatizing traditionally military-run systems such as the airports, ship repair facilities, steel mills, and maintenance and repair industries. SOMISA, FORJA, FM ECA, TAMSE, Area Material Cordoba were among the most important military related industries that were privatized or liquidated or their production was drastically reduced. Companies Petroquímica General Mosconi, residual Tanque Argentino Mediano S.E. (TAMSE) and the ex Military Aircraft Factory still remain within the sector and are pending dissolution. The only succsesful case of conversion was Area Material Cordoba which was leased to Lockheed Martin for the national and regional aircraft maintnance.


Tags:  armed equipment electrical industries