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PUBLIC INDUSTRIAL PARKS

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PUBLIC

INDUSTRIAL

PARKS

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1 - INDUSTRIAL PARK Previously defined physical space and infrastructure intended for the settlement of industries. Distinctive Features - The park has perimeter fencing and a single access gate. - It features services that facilitate the development of

industrial activities such as maintenance, wastewater treatment, water intake and distribution, first aid centers, banking services, communications, etc.

- An organizing administrator, performing control functions,

establishes the types of industrial activities to be conducted in the park. This administrator may answer to the State, a private company, or both.

Types of Industrial Parks Classification according to Administration

Industrial parks may be public (or governmental), private, or public-private ventures. Also, governmental parks may fall under either provincial or municipal jurisdictions. Classification according to Activities - General: No limitations are imposed on the kind of activities

to be developed in the park. However, the establishment of some businesses may contribute to or hinder, directly or indirectly, the establishment of others.

- Thematic: They limit the possibility of settlement to

companies developing a specific type of activity (for example, mining, petrochemical, agro-industrial, or technological parks).

PUBLIC INDUSTRIAL PARKS PROVINCE OF MENDOZA

TYPES OF INDUSTRIAL SITES

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2 - INDUSTRIAL AREA A plot of land intended for the settlement of industries. The space is organized in advance on the basis of the businesses to be established, and includes basic infrastructure and communication services that guarantee the development of industrial activities. In addition, other types of industrial and even commercial activities are conducted simultaneously in this area. The establishment of companies is regulated by each municipality. The industrial areas in Greater Mendoza are located along Rodriguez Peña Avenue and Acceso Sur (Southern Access Road to Mendoza City). As they spread across several districts, there is no single common regulation applying over the area they comprise. Companies from the different industries cluster together in business chambers, which are concerned with pursuing their members' interests. However, unlike the chambers managing industrial parks, these chambers are not administrative bodies.

3 - INDUSTRIAL ZONE An industrial zone is an extension of land where a number of industries have established themselves over a period of time for diverse reasons, such as the thematic concentration of companies, or the proximity to main access or major circulation roads, large establishments or raw materials. No boundaries have been previously set for this zone, and there is no formally organized global administration of services for it. It is possible that business chambers or other third-order organizations operate and serve the companies' common interests. In industrial zones, industrial and service companies often coexist with shops, private houses and educational institutions.

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PUBLIC INDUSTRIAL SITES IN MENDOZA The province of Mendoza features 11 general industrial parks (1 of them under provincial scope and the rest under municipal scope), 8 industrial zones, and 2 industrial areas; all of them distributed across the province's territory. There are also a technological and a biotechnological park, both operating under provincial jurisdiction. The total public infrastructure allocated for the accommodation of industries in Mendoza covers 3,400 ha (8,400 acres). PIMEN: EJE NORTE MINING INDUSTRIAL PARK Extending across 661 ha (1,633 acres), the Park has over 100 companies established and over 60 approved companies which are in the process of becoming established. The last stage of this project currently entails the development of the Ciudad

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Agropecuaria, a space intended for agricultural, animal husbandry and agro-industrial undertakings. Geographical Location The PIMEN is located north of the city of Las Heras, bordered to the south by the railroad, and to the north by Provincial Route 30. National Route 40 is located southeast of the Park and, opposite, is the Francisco Gabrielli Airport. The Park is only 10 minutes away from downtown Mendoza. Activities of the Resident Companies The main activities include metalworking; wood, aluminum and metal carpentry; textile and furniture manufacturing; painting; logistics; plastics; chemical products' warehousing; warehousing in general; and food and vinegar production. Restrictions A number of restrictions have been set forth in regard with the establishment of businesses in the Industrial Park. The entrance, circulation and/or treatment of pathological, pathogen, or industrial hazardous waste in the Park is not allowed. Land Allocation Procedures Public invitation to tender for land allocation under loan for use with the promise of gift, for the establishment of industries and production-oriented services. Innovative system of land allocation in exchange for infrastructure works.

Benefits Exemption from construction taxes for 15 years, and a 50% discount for three years in municipal fees for companies with over 20 employees. The following are the fees subject to discount: license for commercial and industrial operation; inspection and approval of electrical, mechanical and electromechanical facilities; fees on the right to inspection and safety and health control. Infrastructure and Equipment Road opening and consolidation. Asphalt work progress: 30%. Electrical power network: 13.2 kV. Drinking water network. Sewerage system. Public street lighting. Natural gas network. Telephone network. Promotion and Management Body AEPIMEN (PIMEN's Businessmen Association) and the Economic Development Department of the Municipality of Las Heras. Contact 1. Economic Development Department of the Municipality of Las Heras. Phone number: +54 (261) 430 - 9594 E-mail address: [email protected] 2. APAI (Las Heras Investment Promotion and Attraction Agency) Phone number: +54 9 261 598 6244 E-mail address: [email protected]

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PIMEN 2 (PIMEN's extension, in progress) Geographical Location The Eje Norte Mining Industrial Park in its second stage borders south with Santa Rita Street, northwest with Obras Sanitarias Mendoza, north with Red Minetti, and southeast with plots of land belonging to the Las Heras's municipal solid waste disposal plant. Activities of the Resident Companies Metalworking, logistics, food-processing, cement and graphic industries. Restrictions A number of restrictions have been set forth in regard with the establishment of businesses in the Industrial Park. The entrance, circulation and/or treatment of pathological, pathogen, or industrial hazardous waste in the Park is not allowed. Land Allocation Procedures Public invitation to tender for land allocation under loan for use with the promise of gift, for the establishment of industries and production-oriented services. Innovative system of land allocation in exchange for infrastructure works. Affordable plot prices. Benefits Exemption from construction taxes for 15 years, and a 50% discount for three years in municipal fees for companies with over 20 employees. The following are the fees subject to discount:

license for commercial and industrial operation; inspection and approval of electrical, mechanical and electromechanical facilities; fees on the right to inspection and safety and health control. Infrastructure and Equipment Road opening and consolidation. Asphalt work progress: 30%. Electrical power network: 13.2 kV. Drinking water network. Sewerage system. Public street lighting. Natural gas network. Telephone network. Promotion and Management Body AEPIMEN (PIMEN's Businessmen Association) and the Economic Development Department of the Municipality of Las Heras. Body in charge of advising, drafting the bidding documents, and promoting PIMEN: APAI (Investment Promotion and Attraction Agency of Las Heras) Contact 1. Economic Development Department of the Municipality of Las Heras. Phone number: +54 (261) 430 - 9594 E-mail address: [email protected] 2. APAI (Investment Promotion and Attraction Agency of Las Heras) Phone number: +54 9 261 598 6244 E-mail address: [email protected]

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PIP - PROVINCIAL INDUSTRIAL PARK The Provincial Industrial Park is located in the Luján de Cuyo district. The park features a Free Trade Zone with the following operating areas: Storage, Commercial and Industrial Free Trade Zones. The main businesses established in the Park conduct activities connected with mining, metalworking, chemicals, services, oil and gas. Geographical Location The Provincial Industrial Park is located in the southeast of Luján de Cuyo, on National Route 84, at km No. 10, and covers 350 ha (864 acres). Activities of the Resident Companies Mining, metalworking, chemicals, services, oil and gas. Land Allocation Procedures Land allocation, whether by sale, assignment, or full or partial lease, requires the provincial government's authorization. Benefits Provincial Act No. 4227: Exemption from all provincial taxes for three years. Land plots at prices lower than market value. Infrastructure and Equipment The Park features a drinking water network, public street lighting, green spaces, internal streets, a storm-water drainage system, electrical power, Internet connection, maintenance of common

areas, street name signs, natural gas network, private security, traffic signs, an electrical substation, phone service, and public transport. Operating Companies The Provincial Industrial Park is home to fifteen companies. Among the national companies are: Yesos Malargüe (plaster), La Elcha Minera Industrial (mining), Petroquímica Cuyo (petrochemistry), Minera Luján (mining), Paramen (fuel oil sale), Metal 1 (engineering and construction work), Esim (metalworking and equipment maintenance), Polipetrol (fuel oil), Alpha Service (engineering), Aceros Cuyanos (steel works), and Quimycal (chemical manufacturing). The international companies established in the Park are Air Liquide Argentina, Globe Metal, Las Palmas and Knauf Gmbh. The Customs Area also operates in the Park. Promotion and Management Body Under-secretariat of Industry and Technology of the Ministry of Agribusiness and Technology of Mendoza Contact Mr. Carlos Rojo Av. Peltier 351, 6º Piso, (5500) Ciudad de Mendoza E-mail address: [email protected] Phone number: +54 (261) 449 – 2550

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PIM - LUJAN DE CUYO MUNICIPAL INDUSTRIAL PARK The Luján de Cuyo Municipal Industrial Park is located in Luján de Cuyo. Hosting both national and international companies, it is a consortium integrated by the Municipality and representatives of the PIM's Chamber of Businessmen. Geographical Location The Municipal Industrial Park is located in the district of Luján de Cuyo. North border: Provincial Route No. 84; South border: Bioceanic Corridor National Route No. 7; West border: Interchange between the two routes; East border: land plots belonging to YPF. The Park covers 274 ha (677 acres), 40 (98 acres) of which are currently occupied by companies. Activities of the Resident Companies Metalworking for the oil industry, chemicals, pentahydrate copper sulphate manufacturing, industrial gas manufacturing, engineering services, manufacture of concrete posts and polypropylene packaging and containers. Restrictions The companies established in the Park are to comply with the legislation in force listed in Ordinance No. 1517/99 on land use and zoning. Land Allocation Procedures After the project is submitted, the approval of the Departments of Environmental Affairs and Urban Development, as well as of the

Managing Consortium, is required. Should the project be viable, it is recommended to the mayor and then land allocation will take place. The allocation of the plots may be automatically renewed every 10 years. Benefits Exemption from municipal fees, fees on the right to industry, commerce and services, and construction taxes for five years. These benefits may be unilaterally extended by the municipal government. Operating Companies In the Luján de Cuyo Municipal Industrial Park, a number of foreign companies operate simultaneously with local businesses. Some of them are Halliburton Argentina S.A., Envirotech Argentina S.R.L., FADAP S.A., and BOLLAND y Cía., among others. Promotion and Management Body Managing consortium with a Board of Directors consisting of 3 members of the executive branch of the municipal government and 3 representatives of the PIM's Chamber of Businessmen. Contact Mr. Carlos Rojo Peltier 351, 6º Piso, (5500) Ciudad de Mendoza E-mail address: [email protected] Phone number: +54 (261) 449 – 2550

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PIGA - GENERAL ALVEAR INDUSTRIAL PARK Geographical Location The General Alvear Industrial Park is located in the district of General Alvear, in the south of the province of Mendoza, and it hosts exclusively companies from the food and agro-industrial sectors. Activities of the Resident Companies Food and agro-industry. Restrictions Only companies related with the food or agricultural industry may establish themselves in this Park. Land Allocation Procedures Land plots are awarded by public call for tender according to Ordinance No. 2413 by the General Alvear's Honorable City Council. A project is submitted for assessment of economic, technical and environmental feasibility. Benefits According to Ordinance No. 1912, the companies established in the General Alvear Industrial Park may be granted the following benefits for a 10-year period: exemption from power network connection costs, approval of drawings, real estate service fees, fees on the right to industry inspection, and stamp tax duties.

Infrastructure and Equipment Internal Customs office, drinking water network, public street lighting, green spaces, internal streets, perimeter fencing, a storm-water drainage system, electrical power, Internet connection, natural gas network, an electrical substation, phone service, and public transport. Operating Companies Some of the companies established in the PIGA are: El Rosario S.R.L (Di Paolo Maderas) (lumber), Fenix S.A. (fruit production and manufacture), Instituto de Sanidad y Calidad Agropecuaria Mendoza (Mendoza Agricultural Health and Quality Institute). Promotion and Management Body Municipality of General Alvear Contact Mr. Mauro Torres Av. Alvear Oeste 550 (5650) General Alvear Mendoza E-mail address: [email protected] Phone number: +54 (2625) 427393 / +54 9 (2625) 511 024

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PISR - SAN RAFAEL INDUSTRIAL PARK The economic profile of the San Rafael district is agriculture-and-industry-oriented, being the growing of vines, olives, fruit and vegetables, and their derived industries, its main economic activities. Given the region's stunning landscapes, tourism plays an important role among tertiary sector activities. Geographical Location The district of San Rafael currently has only one industrial park, the San Rafael Industrial Park, covering 42.3 ha (approximately 104 acres). Activities of the Resident Companies The Park area has been subdivided into four zones: ZONE 1: Textile industry, saddlery, lumber industry, paper industry, printing and publishing houses; also chemical and non-metallic mineral industries. Machinery and equipment. Manufacture of electrical machinery, devices, accessories, and home appliances. ZONE 2: Food and beverage industries. ZONE 3: Consisting of the parcels that will make up the Park's access road and main streets. The space is intended for administrative buildings, equipment storage, a shopping mall and service center, a multipurpose room and an exhibition hall. The southwest area of parcel F will be destined for an industrial water plant, while parcel A's northwest area will be made into a trucking yard, customs office, and train loading area or dry port. The northeast area of Parcel G will be destined for a sewage treatment plant. ZONE 4: Area subject to public call for tender.

Restrictions No industrial processes involving hazardous substances are allowed. Land Allocation Procedures Land plots are allocated by public call for tender, with the submission of an industrial project, under a lease option-to-buy agreement. Benefits Exemption from municipal fees. Promotion and Management Body C.E.D.E. Foundation (Center for Entrepreneurial Development in Southern Mendoza) Contact CEDE Foundation Phone numbers: +54 (260) 4422290 - 4430038 E-mail address: [email protected]

Mr. Roberto Zelada Mobile phone: 54- 9-(260) 4580553

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SAN CARLOS INDUSTRIAL PARKS Geographical Location Four industrial parks for diverse businesses are currently in

operation in the district of San Carlos.

Activities of the Resident Companies Central San Carlos Area: Garlic packaging and processing. Manufacturing and packaging of food and oleaginous products. Manufacturing of floor tiles and worktops. Canned tomato production. Wood carpentry. Metalworking and bodywork production. Mechanical parts: casting and manufacture. Processing and packaging of seeds for export. Metal parts: spinning and manufacture. Sawmill and crate manufacturing. Organic compounds and substrate amendments. Precast concrete manufacturers. Factory of canned food for export. Agriculture services: sale of fertilizers, agrochemicals and seeds. La Consulta area: Processing and packaging of butter beans. Honey extraction room. Logistics for the area's products. Metallurgical workshop for large structures. Honey extraction room for community use. Plant nursery and point of sale for walnuts, saffron, and aromatic plants. Final product ready-for-sale packaging. Chilecito area: Packing warehouse for aromatic herbs, vegetables and garlic. Pareditas area: Mineral supplements for fodder. Automobile metalwork, bodywork and paint workshop.

Restrictions Only non-contaminating industrial processes are allowed. Companies have to comply with national and provincial regulations on non-contamination and environmental impact. Land Allocation Procedures Application for a parcel entails the submission of a project which will be subject to evaluation and approval by the Urban Planning Department. Benefits The businesses established in the industrial parks above are granted exemptions from municipal taxes for a 15-year period. Additionally, the parcels are provided with water, gas and electricity services. Operating Companies Some of the companies which are already established in the Central Zone: UCO Export (cereal production), Solvencia S.A. (canned tomatoes, peppers and peaches), Agro Dayse (sale of greenhouse products), Transportes Hache Eduardo Gabriel (logistics). Promotion and Management Body Municipality of San Carlos. Contact Urban Planning Department of the Municipality of San Carlos.

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Phone number: +54 (2622) 451446 [email protected] PASIP - PALMIRA INDUSTRIAL AND SERVICE PARK The Palmira Industrial and Service Park is currently under development, and it is expected to embody a comprehensive service infrastructure aimed at industrial, commercial and service locations. Geographical Location The Park is located at the railway and road hub in Palmira (district of San Martín, Mendoza), proving not only a logistics platform for the Atlantic-Pacific axis (Buenos Aires - Mendoza - Valparaíso) but also a strategic point of articulation with the Mesopotamia region in the northeast of Argentina and bordering Brazilian states. Located 35 km (21 miles) from the City of Mendoza, the PASIP is expected to operate as a strategic node of the Central Bioceanic Corridor, integrated with Palmira's multi-modality station. Activities of the Resident Companies The Park is intended for housing non-contaminating industries. Automatization and control. Communications. Energy efficiency. Construction works. Consulting services. Electromechanics. Non-conventional energies. Quality management. IT. Engineering. Logistics. Environmental protection. Metalworking. Irrigation systems. Technology consultancy firms. Wine and must. Construction of a building, with the purpose of renting or selling

its offices to businesses that do not require a large area to conduct their activities. Land Allocation Procedures Parcels in the PASIP are awarded by Permanently Open Call for tenders (Ventanilla Pública Permanente), a mechanism for selection of land purchase offers that enables partial allocations Infrastructure and Equipment Pavement. Public and private road system. Earthworks. Built-in curbs and guards. Horizontal and vertical signs. Irrigation and drainage systems. Landscaping. Electrical power. Natural gas. Telecommunications. Drinking water. Sewerage system. Perimeter fences. Industrial wastewater treatment plant. Institutional buildings. Technological Center, multipurpose room, health and safety. A domestic airport is expected to be built in the near future. As from 2015, the recovery of the complete railway system is expected, as well as the extension of the Customs Primary Area and the Integrated Dry Port in the hands of state-owned company Belgrano Cargas y Logística S.A. Promotion and Management Body Parque Tecnológico Mendoza S.A. (Mendoza Technological Park) started its activities in the private sector to later become a mixed body with the participation of the provincial government and the universities.

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Contact Damian De Biassio - Director Almirante Brown 165. San Martín, Mendoza. Tel/Fax: +54 (263) 4421246 E-mail address: [email protected] Website: www.pasip.net SANTA ROSA INDUSTRIAL PARK Geographical Location This Park is located in the district of Santa Rosa, where agriculture-oriented activities are the main source behind the local economy. The principal crops are vines, fruit trees and their related industries: winemaking and fruit canning. Cattle slaughtering and dry fruit production may also be listed among the district’s activities. Activities of the Resident Companies Mainly agro-industrial and livestock breeding companies. Land Allocation Procedures Public call for tender. Promotion and Management Body Municipality of Santa Rosa. Contact Economic Development Department of the Municipality of Santa Rosa. Phone number: +54 (2623) 497037 E-mail: [email protected]

GENERAL ORTEGA INDUSTRIAL PARK The General Ortega Industrial Park is located in the district of Maipú, covers an area of 46.7 ha (115 acres), and is still under development. Geographical Location The park is currently under execution. The plot assigned for the development of the Industrial Park is located on the east side of Belgrano Street, approximately between National Route No. 7 in the north and Morón Street in the south, in the town of General Ortega, district of Maipú. Promotion and Management Body Municipality of Maipú. Contact Economic Development Department of the Municipality of Maipú. Phone number: +54 (261) 497 - 7437

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LOS BARRIALES INDUSTRIAL PARK The Project for the Los Barriales Industrial Park is currently in process of creation. Geographical Location The Park is located in the district of Junín, at Provincial Route No. 60 and Carril Nuevo R-61. Activities of the Resident Companies To be determined. Restrictions To be determined. Land Allocation Procedures To be determined. Infrastructure and Equipment Under execution. Promotion and Management Body Municipality of Junín. Contact Economic Development Department of the Municipality of Junín. Phone number: +54 (2623) 49205. E-mail address: [email protected]

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TIC PROVINCIAL TECHNOLOGICAL PARK The Mendoza TIC Technological Park seeks to group software and hardware centers, computing services, electronics, and telecommunications into one common space, making Mendoza a pioneer in this field in Argentina. Geographical Location District of Godoy Cruz. Proximity to the universities and the City of Mendoza. Reached by public transport services. Connection of special common services in the near future. Activities of the Resident Companies The park is expected to host businesses oriented to the development of software, hardware, IT, electronics and telecommunications. Land Allocation Procedures Parcels may be acquired in the company's owner's name. They are awarded by public call for tender. - Should the applicant be a SMBE, an academic or scientific

institution settled in the province of Mendoza, 25% of the market price will be requested.

- Should the applicant, or one of the applicants, in the case of ACEs (Associations for Enterprise Cooperation) or UTEs (joint ventures), be a SMBE settled outside the province of Mendoza, 50% of the market price will be requested.

- Should the applicant, or one of the applicants, in the case of ACEs or UTEs, be a foreign company or a large national company, 100% of the market price will be requested.

The applicable market prices will be those in effect at the time the call for tender is launched. The plots' surface is about 500 m2 (5,382 ft2) and they admit building structures of up to four floors. Each applicant may purchase up to two plots of land. There will also be the option of renting the main building's work offices, currently under construction. Benefits Provincial Tax Act No. 8523 sets forth that the real property located in the Mendoza TIC Technological Park shall be exempted from real estate tax, gross income tax and stamp tax duties on real property located in, and on the activities conducted in the Technological Park. The exemption will be effective from the date of issuance of the authorizing certificate and will be in effect for a period of five (5) years. Infrastructure and Equipment A main building with four-floors covering 3,700 m2 (39,826 ft2), with room for housing about twenty TIC companies, a business incubator, an auditorium, rooms for business and administrative use, and for common areas and services. Moreover, twenty plots of land will be made available for companies and entities willing

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to get established in the Park. A main square for pedestrian access and circulation, as well as a bar and urban facilities to promote social interaction. The area will also feature a peripheral bicycle lane, pedestrian circulation areas reaching all parcels, and small electrical cars intended for the mobility of disabled people and services. This strategic combination contributes to reduce air, noise, and visual pollution. Operating Companies In process of allocation.

Promotion and Management Body IDITS (Institute for Industrial, Technological and Services Development). Contact IDITS (Institute for Industrial, Technological and Services Development). General manager: Gabriela Fretes Julián Barraquero 130, Ciudad de Mendoza. Mendoza Phone number: +54 (261) 424 - 6347 E-mail address: [email protected]

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BIOTECHNOLOGICAL AND RENEWABLE ENERGY PARK A project is being currently designed for the construction of a Biotechnological and Renewable Energy Park. Geographical Location The plot is in the vicinity of the Mendoza Agricultural Experimental Station of the National Institute of Agricultural Technology (INTA). It is also near the National Institute of Industrial Technology (INTI), in the district of Luján de Cuyo, opposite the School of Agricultural Sciences of the National University of Cuyo. Activities of the Resident Companies The park is expected to host businesses related with the biotechnological and renewable energy sector. Land Allocation Procedures Concession of land to build the infrastructure needed to run each specific project. Lease of premises for offices. Lease of premises for laboratories. Benefits To be determined.

Infrastructure and Equipment Common areas: cafeteria, green areas, parking lot. Support rooms: conference rooms, library, meeting rooms. Multidisciplinary consulting services.

Promotion and Management Body Under-secretariat of Industry and Technology of the Ministry of Agribusiness and Technology of Mendoza. Contact Mr. Carlos Rojo Av. Peltier 351, 6º Piso (5500) Ciudad de Mendoza, Mendoza Phone number: +54 (261) 4492550 E-mail address: [email protected]

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LEGAL MATTERS Any business company deciding to get established within provincial territory has to comply with the following legislation in force: Provincial Act No. 5961 Environmental Protection in the Province of Mendoza. Regulatory Executive Order No. 2109 - Regulatory Executive Order of Act No. 5961.

Provincial Act No. 5917 Referring to hazardous waste. Regulatory Executive Order No. 2625 - Regulatory Executive Order of Act No. 5917 Provincial Act No. 5970 Urban Solid Waste Provincial Acts No. 8051 and 8081 Territorial Planning and Land Use Act National Act No. 22428 Soil Preservation National Act No. 25675 Comprehensive Land Act

National Act No. 19587 and Regulatory Executive Order No. 351/79. Health and Safety National Act No. 24557 and Regulatory Executive Orders No. 1070/96 and 333/96 Occupational Hazard Act. National Act No. 24051 and Regulatory Executive Order No. 831. Hazardous Waste

Investment Promotion Agency

Government of Mendoza

Phone numbers: +54 (261) 449 - 3040

E-mail address: [email protected]

www.mendozainvest.com