List of New Canadian Business Initiatives in Argentina

January 20, 1998
Buenos Aires, Argentina

Ag-West Biotech, Saskatoon, Saskatchewan Ag-West Biotech and ArgenINTA of Buenos Aires have signed a letter of intent to co-operate in the areas of: livestock genetics; animal feed production; natural products and plant extracts; molecular farming; plant tissue culture; biological fertilizers and rhizobia; and novel plants and plant products. Ag-West is a non-profit, independently operated organization funded by the Saskatchewan Department of Agriculture and Food. It is the Province's main instrument in developing agro-biotechnical industries. INTA (Institute Nacional de Technologia Argropecvaria) is the national plant and animal scientific research organization in Argentina, responsible for national programs in agricultural research and agriculture biotechnology for the development of agricultural crops, farm animals and microbial agents.

AGRA Earth and Environmental Ltd. (AEE), Calgary, Alberta AEE and AGRA Systems Limited of Ottawa, Ontario, has signed a memorandum of understanding with AMBIENTAL S.A. of Buenos Aires for the joint pursuit and conduct of environmental service projects in Argentina. The MOU covers a broad range of services, including: environmental management systems and audits; impacts assessments; risk assessments; water resources and water quality and other assessments. The agreement is estimated to generate about $3 million in new business during the next three years. AGRA Inc. provides engineering and construction, environmental and systems technology solutions to government and private sector customers around the world. AGRA Inc. employs 5,000 people in 155 offices in 22 countries.

A.J. Maritime Inc., St. John's, Newfoundland and Labrador A.J. Maritime Inc. has signed an agreement with Atkinson & Co. S.R.L. of Buenos Aires to represent each other in their respective markets. Both companies specialize in complete transportation services in freight forwarding, shipbroking, chartering, custom services, warehousing and tranportation consulting. The parties will also support Canadian and Argentinean partnerships in various areas, including building projects, food products and machinery and be offering ship chartering services from North America to Argentina and other Latin American countries. This agreement could generate between $2-$5 million in revenues.

The Alliance of Manufacturers and Exporters Canada, Ottawa, Ontario The Alliance has signed an agreement with Unión Industrial Argentina (UIA), Argentina's premier industrial association, to provide Canadian industrial and technological expertise to the small- and medium-sized enterprise sector in Argentina. The Alliance, taking full advantage of its extensive membership among Canadian industry and research and technology institutions, will serve as the Canadian focal point for the identification of Canadian expertise to support UIA's project with the Inter-American Development Bank. This project is aimed at developing and maintaining four centres for industrial management in Argentina. The Alliance is a national organization with more than 3,500 member companies, representing the strength of Canadian industry, exporters and research and technology institutions. Unión Industrial Argentina is the voice of industry in Argentina, which has a direct impact on industrial policy development in Argentina.

Alliance Medical Inc., Saint-Laurent, Quebec Alliance, a manufacturer of highly specialized medical equipment, has signed a contract with Digimed of Buenos Aires for the distribution of Alliance's products in Argentina. Alliance, which employs 70 people, estimates the value of the contract will be $500,000 over three years. Alliance believes the agreement will help to open up the South American market for its portable and mobile ultrasound devices, which can be used in obstetrics, gynaecology, radiology, urology, cardiology and cardio-vascular surgery. Alliance works with distributors in 55 countries.

Association of Canadian Community Colleges (ACCC), Ottawa, Ontario The ACCC has signed a memorandum of understanding with the Government of the City of Buenos Aires (Gobierno de la Ciudad de Buenos Aires) to establish a business relationship that will be used to develop commercial exchanges and co-operation in education and training. The ACCC represents 175 Canadian colleges and technical institutes and promotes industry-education linkages, both in Canada and internationally through technology transfer, human resource development and other initiatives.

The ACCC has also signed a memorandum of understanding with La Fundación Banco Mayo of Buenos Aires to establish a business relationship that will be used to develop commercial exchanges and co-operation in education and training. The Fundación Banco Mayo is a well-established organization with several key centres, including: a business development centre, a new enterprises centre, a business school and a business development centre for women.

The ACCC has also signed a memorandum of understanding (MOU) with Programa de Reforma de la Educacion Superior Tecnica No Universitaria (PRESTNU) of Buenos Aires. The MOU ratifies an agreement between the two organizations under the Canadian International Development Agency's Transfer of Canadian Technical Education System Technologies (TCTEST) program. This TCTEST project will contribute to the transformation of the tertiary, non-university education system in Argentina. Canadian college expertise in the co-ordination, management and implementation of technical education reform will be transferred to Argentinean institutions via partnerships.

Atomic Energy of Canada Limited (AECL), Mississauga, Ontario Atomic Energy of Canada Limited (AECL) has signed a technical co-operation agreement with Comisión Nacional de Energía Atómica (CNEA) of Buenos Aires, building on the success of the CANDU project in Argentina to date. This agreement provides for the co- operation of the two companies in research and development (R&D) in support of CANDU, and in the supply of heavy water, through information exchange, attachments and joint projects. The two companies expect to increase the effectiveness of R&D programs carried out by both parties in the areas of fuel channels, reactor chemistry, fuel cycles, nuclear safety and the development of advanced CANDU power plants.

Bayly Communications Inc., Ajax, Ontario Bayly Communications has signed a memorandum of understanding to strengthen its relationship with COASIN Comunicaciones of Buenos Aires, which already distributes Bayly's digital telecommunications products in Argentina. The agreement calls for COASIN to provide technical support services to customers. New business will be from expansion of the TGN pipeline system that serves northern Argentina, and is valued at $500,000 over the next two years. Bayly Communications Inc. manufactures and sells digital access and transmission products to domestic and international markets.

CAE Electronics Ltd., Montreal, Quebec CAE Inc. has signed a contract with EDESUR (Empresa Distribuidora Sur) of Buenos Aires for the supply of a high-voltage transmission SCADA system consisting of a master station and 11 remote terminal units. EDESUR supplies electricity to more than two million people in the southern part of Buenos Aires, an area of 2,500km2. The contract is valued at $4 million (US $2.7 million) and will be completed by early 1999. CAE Inc. is an advanced-technology company, specializing in the design and production of flight simulation equipment and visual simulation systems. The company also makes military simulation systems, electronic control systems, and advanced industrial technologies and employs 6,600 people.

C.E. Franklin Ltd., Calgary, Alberta C.E. Franklin, one of Canada's largest industrial and oilfield distribution companies, has signed a memorandum of understanding with Rectificaciones Rivadavia International of Comodoro Rivadavia, Argentina, to establish a joint venture that would provide technology transfer, services, oil-field supplies, parts and equipment to Southern Argentina's industrial, petroleum and marine sectors. A portion of the existing Rectificaciones building facility in Comodoro will be remodeled to accommodate a C.E. Franklin oilfield supply store. The store will be the first of its type in Southern Argentina and is expected to be opened by the third quarter of 1998. RRI is one of Argentina's fastest-growing companies in its field.

Canadian Advanced Technology Association (CATA), Calgary, Alberta CATA has signed a contract for a joint venture with Cicomra and Cabase to develop and manage a virtual business corridor to encourage business deals between Canadian and Argentinian high technology firms. The project is valued at $250,000, of which $100,000 is Canadian content. The association has developed TechnoGate, an electronic business system that encourages strategic commercial partnerships by interconnecting global virtual business corridors. The association employs 19 people.

Canadian Association for Community Living, North York, Ontario The CACL has signed a memorandum of understanding with the Federacion Argentina de Entidades pro Atencion al Deficiente Intelectual (FENDIM) (Argentinian Federation of Associations for Persons with Intellectual Disabilities) of Buenos Aires on technical cooperation. The project will promote the participation of people with disabilities in education and in the workplace and in turn help alleviate poverty for this group. The CACL has more than 40,000 members.

Canadian Plastics Industry Association The Canadian Plastics Industry Association has signed a memorandum of understanding with the Camara Argentina De La Industria Plastica to establish a co-operation relationship to promote the exchange of information related to plastics trade and investment. This agreement will promote increased commercial contact between member companies in both countries through trade missions and the sharing of statistical and technical information.

Capital International CDPQ, Montréal, Québec Capital International CDPQ, an affiliate of the Caisse de dépôt et placement du Québec, has signed an agreement to invest $36 million (US$25 million) in Exxel Capital Partners V of Buenos Aires, an investment fund of US$500 to $750 million. The fund's investment strategy is to take majority shares within private companies in Argentina (70 per cent) and Brazil (30 per cent). All activity sectors are eligible apart from real estate and large privatized government corporations. One of the major investors in Canada, the Caisse de dépôt et placement du Québec manages assets of US$ 45 billion. The Caisse de dépot et placement du Québec is one of the most important shareholders in Canada, with interests in the 200 largest companies - including the six major Canadian banks - and listed on the Montreal, Toronto and Vancouver exchanges. Through its subsidiaries, it also holds the largest portfolio of risk capital in Canada, managing investments close to US$ 4 billion.

Coles Associates Ltd., Charlottetown, Prince Edward Island Coles has signed an agreement with Municipalidad de La Plata for consulting services to complete concept plans, economic and financial evaluations for a food park and technology centre. The first phase of the project is expected to be completed by March 1999. Coles is a multi-disciplinary architecture, engineering and management consulting firm, and employs 25 people.

Confederation College, Thunder Bay, Ontario Confederation College, which specializes in educational technology with core programs in aviation, health sciences, aboriginal studies, business and technology, has signed a letter of intent with Maimonides University of Buenos Aires. The two institutions will pursue common academic, scientific and technological objectives with a goal of expanding knowledge and the economies of their respective countries. This agreement will involve such activities as faculty/student exchanges, joint research, training, business initiatives and the exchange of technological support.

Confederation College has also signed a letter of intent with La Escuela Tecnica de Aviacion Profesional (ETAP) and Colegio Alto Vuelo, the oldest aviation school in Argentina, to develop a multi-media program to assist with the teaching of English for pilots. In addition, the two institutions will explore other areas of mutual interest in the aviation sector including students exchanges and pilot upgrades.

De Cloet Ltd., Tillsonburg, Ontario De Cloet has signed a contract to establish a joint venture company with De Cloet Sudamericana S.A., making it the exclusive South American manufacturer, distributor and agent for De Cloet Ltd.'s specialized agricultural equipment. De Cloet will support the project with research and development and the supply of manufactured parts. The agreement is expected to generate $21 million in 1998 and 1999. It is expected to continue to generate a minimum of $10 million annually. De Cloet employs about 100 people, and exports to over 20 countries on four continents.

Duha Group, Winnipeg, Manitoba Duha has signed a contract with Sinteplast S.A. of Buenos Aires worth $3 million to produce an integrated colour system to be used with paint marketing. The company expects the system to be used in Brazil, Argentina, Bolivia and Uruguay), and that the project will run for at least five years. The company, which employs 300 people, designs and manufactures colour merchandising tools.

Eicon Technology Corp., Montreal, Quebec Eicon Technology and BTW S.A. of Buenos Aires are entering into a Eicon business partner agreement to strengthen their ties, the first such agreement in Argentina for Eicon Technology. The agreement outlines commitments of sales and technical training, priority technical support, and product representation between the two businesses. The total business value for 1998 is expected to be $350,000. Eicon offers worldwide remote access solutions: ISDN, WAN and SNA. The company exports to more than 120 countries, including France, the United Kingdom, Germany, Spain, Italy and the United States.

Eicon Technology is also signing a memorandum of understanding with Computer 2000 to recognize the continued mutual business opportunity that exists by Computer 2000 in distributing Eicon's products. Eicon and Computer 2000 are renewing their long business relationship and agreeing to a year-long marketing strategy designed to increase awareness of Eicon's products. The total business value for 1998 is expected to be $350,000.

FGA Consulting Engineers, St. John's, Newfoundland and Labrador FGA Consulting Engineers has signed a letter of intent with AICC Consultores S.A. of Buenos Aires that will lead to FGA's participation in projects in all sectors of Argentina's economy. FGA expects to conclude arrangements with AICC over the next several months that will lead to opportunities in the Argentine market as well as the transfer of technology to AICC. AICC is one of Argentina's largest engineering firms with a wide array of clients in most sectors of Argentina's economy, including oil and gas, transportation and public utility, infrastructure, mining and agriculture. FGA is a medium-sized firm, specializing in structural, welding and mechanical engineering as well as non-destructive testing and materials engineering.

Fonds de solidarité (FTQ), Montréal, Québec The Fonds de solidarité (FTQ) and its partners, ForAction international (Montreal) Inc. of Montreal, Quebec, and Scierie Davidson (Quebec) Inc., have signed a memorandum of understanding with Brandstetter Asseradero for the construction of a lumber reworking centre in Misiones Province, Argentina. The project, valued at $19 million, of which $13 million is Canadian content, includes a lumber reworking shop for high value-added products. Fonds de Solidarité is a union fund that manages more than $2.3 billion in assets, has invested in 664 Quebec companies so far.

The Fonds de solidarité (FTQ) and its partner, ForAction international Inc. have also signed a memorandum of understanding with the Argentine companies Corfodelta and Cederes, which are part of the National University of Lanus, for the completion of a pre-feasibility study to develop the forestry resources of the Buenos Aires delta. The study is valued at $250,000, of which 80 per cent is financed by the Canadian International Development Agency's Inc. program, and is the first phase of a broader project involving a number aspects of delta management.

The Fonds de solidarité (FTQ) and the Société Générale de Financement (SGF) have signed a memorandum of understanding with Argentina's Agencia de desarrollo de Inversiones to facilitate investments by Argentinean and Quebec small- and medium-sized enterprises.

The Fonds de solidarité (FTQ) has signed a cooperation agreement with Union OmbreraMetalurgica (UOM) whereby the two parties agree to work together on a feasibility study aimed at the modernization of UOM's medical network.

The Fonds de solidarité (FTQ) has signed a cooperation agreement with FATLYF whereby the two parties agree to work together on a feasibility study in order to modernize FATALYF's energy production and distribution network.

Harris Canada Inc., Dollard-Des-Ormeaux, Quebec Harris Canada has signed a contract with McCaw Argentina S.A. of Buenos Aires. The project is valued at $2.8 million and is composed of microwave radio systems manufactured in Canada for McCaw's trunking mobile radio network.

Harris Canada has also signed a technology transfer agreement with their partner in Argentina, Coasin Communicaciones of Buenos Aires, which will allow Coasin to establish a customer service centre with component repair capabilities for improved technical support to Harris' customers.

HYGREXT-Spehr Industries, Bolton, Ontario HYGREXT-Spehr Industries has signed a memorandum of understanding with Enertech S.A. of Buenos Aires and the National University of General San Martin for the specification, design and potential implementation of a chromium-contaminated sludge treatment plant drying facility. The main sector being considered for the plant is tanneries. HYGREX, which employs 20 people, specializes in drying applications where water is basically the only medium to be removed. The HYGREX system is an award-winning environmental technology. Wintec EMC will provide financial, training and technical engineering services. The project is valued at $3.4 million.

Industry Canada, Ottawa, Canada Industry Canada's Schoolnet (Information Highway Applications Branch) has signed a memorandum of understanding with Roberto Noble Foundation (Fundacion Roberto Noble) - Clarin Group (Grupo Clarin) to provide Canadian expertise for the design, the transfer of technology and know how of Industry Canada's Schoolnet and programs. Under this agreement, the parties will design a national network, develop local content, manage the initiatives and programs to support this network, and integrate it into the community through points of access and schools. The group is also interested in training in the use of information and communication technologies, mainly for the preparation of Internet-ready material, the digitization of material and databases, and other programs, to improve local content and increase the connectivity market. Grupo Clarin, a major media company, has extensive experience in the incorporation of media in schools. The Fundacion Roberto Noble wishes to build on this experience to incorporate new digital forms of communication, through their new company Prima-Ciudad Digital. They wish to become the first interactive network of Argentinean media.

Industry Canada's Schoolnet (Information Highway Applications Branch) has also signed a memorandum of understanding with Consejo Federal de Inversiones (CFI), an inter- provincial organization, for planning, technical assistance and financial co-operation. The CFI would like to use Canadian expertise, particularly Industry Canada's Schoolnet model, to promote the use of information and communication technologies as they apply to teaching and training, to the creation and management of a network which will connect the member provinces, to support the operation of the CFI and to improve the delivery of services. The CFI also seeks to train its staff in the use of technological tools, the preparation of content and the production of material for use in a digital fashion, as well as to prepare course material for distance courses, teaching and training for both the public and the private sectors. Industry Canada's Schoolnet (Information Highway Applications Branch) has also signed a letter of understanding with the Provincial Education Council of the Province of Rio Negro for the modernization of teaching methods and curricula. The Province intends to develop an interactive education network aimed at raising the quality of its educational services and improving community communications. The Province is interested in wiring all schools, government services and hospitals, providing teaching and training in the use of information and communications technologies, based on the model of Industry Canada's SchoolNet network and the Information Highway Applications Branch's programs.

Industry Canada's Schoolnet (Information Highway Applications Branch) has also signed a memorandum of understanding with the Universidad de Morón's Faculty of Computing, to use Canadian expertise in the use of information and communication technologies to develop teaching and training material for the public and private sectors. The University also wants to improve the performance of its networks and to expand them to the community through community access programs, together with teaching training and distance delivery of courses, especially for people with special needs. The University is also interested in the establishment of a joint centre for the development of multimedia applications for learning and training.

Industry Canada's Schoolnet (Information Highway Applications Branch) has also signed a memorandum of understanding with Universidad de San Martin to assist in integrating the networks of the University's campuses and government institutions. Industry Canada would also help the University expand services through community access programs, teaching and training, distance-learning courses and new content, not only for their students but also for government and university staff.

MNC Group Inc., St. John's, Newfoundland and Labrador MNC Group Inc. has signed a memorandum of understanding with AICC Consultores S. A. of Buenos Aires to transfer technology in the environmental sector, enabling AICC to offer a broader array of services to its clients. Such an alliance offers new opportunities for both AICC and MNC. AICC is one of Argentina's largest engineering firms with a wide array of clients in most sectors of Argentina's economy, including oil and gas, transportation and public utility, infrastructure, mining and agriculture. MNC Group Inc. is an engineering and business management firm, offering environmental, safety and quality management services to the mining and oil and gas sectors.